2 P a g e MANGALYAAN A MISSION FROM UNCERTAINTY TO CERTAINTY

Transcription

1 LOST OPPORTUNITY Having cut the key repo rate by 25bps to 7.75 per cent barely three weeks earlier, the RBI Governor has fallen back on the wait-and-watch game that characterized monetary policymaking in Although this may be keeping with market expectations, The Governor ought to have moved ahead. The situation remains bleak in industry and infrastructure- the latest core sector output figures for December show a growth of just 2.4 per cent, while industrial growth for this year is a dismal 2 per cent. Yet, the possibility of turning things around seems brighter than ever. There are hardly any downside risks to lowering rates and getting investment off the ground besides reducing the cost of holding inventories. Retail inflation, at below 6per cent, is well under the RBI target of 8 per cent for January 2015 and 6 per cent for next January. The rupee looks quite stable as of now, with the current account deficit at below 2 per cent of GDP and quantitative easing by the European Central Bank likely to lead to an increase in inflows. With the RBI, in fact, intervening in the currency market to keep the rupee from rising sharply, it could have considered another rate cut. The window opportunity provided by low oil prices should not be frittered away, while it lasts. The governor could have used this chance to push a further 25 bps cut and jump-start the economy whose investment intentions are still weak. Waiting for a decisive victory over inflation before making rate cuts runs the risk being behind the curve, notwithstanding the RBIs keenness to avoid flip-flops or U-turns. To be fair, the Governor has sought to revive private investment interest by slashing the statutory liquidity ratio the proportion of deposits that bank need to invest in Government securities- to 21.5 per cent. That should release about Rs.45,000 crore. But for this money to actually translate into investment on the ground, bank also need to shed their overhand of bad debt an area where the central bank s rhetoric against big ticket defaulters has not been matched by action. The SLR cut is also a clear signal that the Centre remains committed to fiscal consolidation and that the onus for revival will lie more in the hands of India Inc. whether it is rate cuts or a reduction in SLR requirements, banks have been somewhat reluctant to lower rates and lend pro-actively. It is time for North Block to take stock of ecosystem issues in banking to ensure that monetary transmission improves, even as individual banks retain their operational autonomy. To boost industry, infrastructure lending needs to be prioritized, for which a concerted institutional response, involving the banking sector, 3P India and Niti Aayog, is called for. The next Budget, just three weeks away, is expected to unveil a new policy architecture to put India back on the high growth path. Monetary policy, they say, is all about timing. That rings particularly true at this point in time.

2 ENRICH YOUR KNOWLEDGE 2 P a g e MANGALYAAN A MISSION FROM UNCERTAINTY TO CERTAINTY With the launching of Mars Orbiter Mission (MOM), also named as Mangalyan, India created history. India is the first nation to reach Mars in its maiden attempt to explore the uncertainty, in Mars, a success that eluded many other advanced countries. The feat is shining example of what we are capable of as a nation. The country has dared to reach out to the unknown and gone beyond the boundaries of human enterprise and imagination. It is a proud moment for all Indians. In its rendezvous with the red planet, India made the cheapest ever deep space journey at a frugal budget of Rs. 450 crores and become the first ever Asian nation to reach Mars. What we achieved to near impossible and prevailed through all odds, criticism and challenges. The journey of over 660 million kilometers was launched on 5 th November 2013, and took nearly 10 months to reach Mars Orbit with effortless ease. During its mission there was a challenge of a comet coming enroute, which was successfully manipulated by making a slight deviation from its route with utmost precision. As per the report 51 missions were attempted across the world so far, of which 21 had succeeded. The countries interest the planet Mars is because of its similarities to Earth in respect of atmosphere, seasons and changing weather etc. The Surface also shows ancient water and volcanoes fit for human inhabitation. It is now reported that NASA scientists have spotted a crocodile like object on Mars, hinting towards another sign of life on the planet. Since the object was stiff, it was either fossilized or frozen which could once again indicate that there has been a life on Mars. NASA however has not released any official statement in this regard. India has got unique history of space technology since the period of Aryabhatta, the great mathematician and astronomer, who was the head of astronomy department of ancient Nalanda University. He set up an observatory at the Sun temple in Taregane in Bihar. Aryabhatta insisted that the earth rotates around its axis daily and that the apparent movement of the stars is a relative motion caused by the rotation of the earth. He has also scientifically explained solar and lunar eclipses. His computational paradigm was so accurate. This technology was passed on to generations, which was further transformed with modern technology. Knowledge came from our ancestors who predicted eclipse accurately and calculated planetary position. As such with this achievement we have honoured our ancestors while inspiring our posterity. Indian Space Research Organization, (ISRO) developed the technology with modern scientific know how and carried out many missions to the space successfully in the past. All the achievements are the fruit of collective commitments of our scientists, as contributions came from ISRO labs in Bangalore, Ahmadabad, Rajkot, and Trivandrum and many other places across the country. Prime Minister, Shri Narandra Modi was so proud and happy about our scientists who achieved this mission. While congratulating them on their success he said Today MOM has met Mangal (Mars) and Mangal has got MOM. The time this mission was short name as MOM. I was sure that MOM

3 3 P a g e won t disappoint us According to Dr. S. Radhakrishnan, the scholar, philosopher, writer, statesman and former President of our country, Science is both knowledge of power. It has interest as well as utility. It is illuminating as well as fruitful Every creation under the Sun is influenced by the phenomenon of motivation. Our scientists raised to the occasion at achieving their mission in reaching out the unknown destination that made the country proud. Labour Research congratulates all those scientists in ISRO who contributed to the successful launching of the Magalayan and wish them all success in continuing their mission to other planets beyond mars. Courtesy - Labour Research November-December EXCERPTS FROM AIRRBOF CIRCULARS Circular # 01: st January 2015 MEETING OF WEST BENGAL STATE COMMITTEE AT BARDHAMAN ON 28 TH DECEMBER 2014 West Bengal State Committee of AIRRBOF, WBRRBOA, is one of the vibrant State Committees of our Federation. An extended Meeting of the State Committee took place at Lions Club Auditorium at Bardhaman on 28 th February, General Secretary of our Federation, Com. S.K. Bhattacharjee attended the Meeting as Chief Guest. In the absence of Com. Swapan Sarkar, President of the Association who had retired on superannuation, Com. Debasis Mahapatra was proposed and seconded by to preside over the Meeting. The Meeting started with the presentation of the report by Com. S.K. Pal, Secretary, WBRRBOA. The report was deliberated upon by the participants and subsequently adopted. The Statements of Accounts was placed by the Treasurer, Com. Saibal Modak. Com. S.K. Bhattacharjee, General Secretary, AIRRBOF shared with the participants the recent developments on RRB Act Amendment Bill, the interim judgment of Hon ble Supreme Court & the steps taken by the Federation and position of salary revision. He called upon the audience to remain united and whole heartedly strive for success of agitation programme called by Federation and Confederation. The Meeting, in view of retirement of some office bearers, elected the following office bearers. i) President Com. T.K. Hazra (BGBOA) ii) Vice President Com. N.K. Roy (UBKGBOO) iii) General Secretary Com. S.K. Pal (AOPGB) iv) Dy. General Secretary Com. J. Sinha (BGBOA) v) Treasurer Com. S. Aich (AOPGB) vi) Secretary Com. C. Majumdar (AOPGB) The State Committee shall comprise of six office bearers and all Regional President and Secretary of all the three affiliated units of AIRRBOF in the state of West Bengal.

4 4 P a g e It was also decided that the three affiliates shall contribute Rs. 30/- per member per annum to WBRRBOA. A large number of Retirees of the RRBs attended the Meeting. The leadership of the Pensioners Associations also shared their thoughts with the participants. An Adhoc Committee of the Pensioners Association of the RRBs of West Bengal was constituted with Com. Swapan Sarkar as President and Com. Sanat Gaswami as General Secretary. The Meeting ended with vote of thanks proposed by Com. Baidyanath Sarkar. Circular # 02: th January 2015 OUR ONGOING STRUGGLE FOR SALARY REVISION We reproduce hereunder the text of All India Bank Officers Confederation Circular No. 01, dated 2 nd January, On the onset, we once again convey our heartiest greetings and good wishes to all our members and their family members on the New Year. Please refer to our Circular No. 2014/94 dated , advising you the programme decided by UFBU and also the programme decided by the four Officers Organisations, circulated vide our Circular No. 2014/91 dated Consequent to our call of strikes, CLC (Central) has fixed a Conciliation meeting between the UFBU and IBA on 5 th January at 3.30 p.m. at Delhi but we should not relent on preparation of our agitational programme, as we all are well aware of the adamant attitude of IBA and indifference of Government towards our just demands. We, therefore, once again request you to ensure implementation of all the programme, given hereunder, call of which has been given by the four Officers Organisations including our Confederation and the UFBU, in full earnest. 5 th January, 2015 BLACK RIBBON BADGE WEARING 6 th January, 2015 MASS DEMONSTRATIONS /PROCESSIONS/RALLIES IN ALL CENTRES 7 th January 2015 ONE DAY ALL INDIA STRIKE 10 th January, 2015 HUMAN CHAIN IN ALL STATE CAPITALS AND MAJOR CITY CENTERS 17 th January, 2015 WOMEN RALLY / DEMONSTRATION AT ALL STATE CAPITALS AND MAJOR CITY CENTERS 21 st January 2015 to 24 th January DAYS CONTINUOUS STRIKE ALL OVER THE COUNTRY 16 th March 2015 onwards INDEFINITE STRIKE In this regard, we once again reiterate and request all our Affiliates / State Units to ensure submission of letters (as per performa already circulated) in delegation form to all the MPs of their areas explaining them the contents of the letter with a request to forward the same to Hon ble Finance Minister. We are attaching a forwarding letter made by one of the MP, whom we met for the said purpose, which may facilitate in preparing a forwarding letter by them.

5 5 P a g e Our members are also aware that AIBOC had represented to all concerned authorities viz. Hon ble Prime Minister of India, Hon ble Finance Minister, Secretary, Ministry of Finance, Department of Financial Services and Governor, RBI seeking our representation in Gyan Sangam as being one of the major / important Stake Holders. Since, there was neither any response nor were we invited to the discussion, an open letter was sent to the concerned Authorities, text of which was sent to all Affiliate for their information / circulation / publishing in the press / coverage in electronic media. We are happy that all important financial Newspapers have given due coverage to our communication to the authorities concerned. It was also decided by our Confederation that we should give our view point by an open appeal to the Prime Minister of India through advertisement in Pune edition of leading Newspapers. The purpose was to draw attention of Politicians / Bureaucrats / top Executives of Banks, attending the Gyan Sangam to our views so that the decision making with regard to the so called reforms can be influenced. These advertisements appeared on the front half page of Indian Express and in Quarter page of Times of India, Maharashtra Times, on 3 rd January, 2015, i.e. the day when Hon ble Prime Minister reached Pune to address the Gyan Sangam. Comrades, we shall continue to make all efforts through all possible channels to oppose policy changes hinted by the Authorities, in the name of reforms, which are against the Public Sector Banks and the common man of the country. We once again urge upon you to ensure whole hearted participation in all the above agitational calls and make it a great success. Let us all remember that the Strength and growth come only through continuous effort and struggle. March On! March On!! Circular # 03: th January 2015 JOINT FORUM OF GRAMIN BANK UNIONS MET IN NEW DELHI ACTION PROGRAMME TO FIGHT RRB ACT AMENDMENT BILL DECIDED Joint Forum of Gramin Bank Unions held its Meeting in New Delhi on 15 th March, The Meeting was presided over by Com. S.K. Bhattacharjee, General Secretary, AIRRBOF. The minutes of the Meeting containing the important decisions taken in the Meeting are attached. All our affiliates/members are advised to strictly observe the Programme decided in true spirit. JOINT FORUM OF GRAMIN BANK UNIONS (FORUM OF ALL UNIONS OPERATING IN RRBs) Minutes of the Meeting of the Joint Forum of RRB Unions held in New Delhi on 15 th Jan At the outset Com. D.N. Trivedi proposed the name of Com. S.K. Bhattacharjee to preside over the meeting.the proposal was duly seconded. President took the chair and confirmed that some constituents of Joint forum could not attend the meeting due to some constraints.he allowed the observers to remain present.

6 6 P a g e President made his initial comments about the back ground of the meeting pointing out that the sinister design of Govt. of India in reintroducing the RRB Act amendment Bill and getting it passed in both the houses shall open the doors of privatisation of RRBs. He called upon the constituents to tender their views so that common approach can be formulated to thwart the move. The major constituents came up with their views. Com Sayeed khan opined that mass mobilisation of Rajyasabha MPs is required to block the passage of the Bill with simultaneous campaign amongst general public and membership. He proposed Dharna and rally before parliament. He also advocated for One day strike as an when the Bill shall be placed before the upper house. Com. D.N. Trivedi pressed for action programme including mass mobilization and opined that in view of reservation of some constituents about strike and same programme should not be decided at this moment. He further pointed out that campaign against RRB Act amendment Bill, 2014 should be initiated from the grass root level, State level and at National level in phased manner and one week mobilisation camp in New Delhi during Budget session from 9th to 14th March, Com.SK Bhattacharjee endorsed the view of Com. Trivedi. He emphasized on strict implementation of programme at all levels with a view to create a mass awareness at each and every level. He further pointed out that mobilisation of public/customers opinion against the Bill should be created by distribution of leaflets. He also held the view that Rajyasabha MPs should particularly be contacted at their respective states by the state leaders of constituents and gets our memorandum to Finance Minister forwarded by them. Com. GG Gandhi opined that differences at bank level unions should be minimized by active counseling by the national leaders so that all the programmes can effectively be implemented. House also took stock of the progress in pension parity matter and expressed reservation over the delay and apathy of GOI/DFS in starting the process of negotiation in accordance with the interim order of the Hon ble Supreme Court of India. At the last President summed up the discussion and confirmed that the following decisions are taken unanimously: 1. Submission of Memorandum to Finance Minister and Prime Minister and a separate Memorandum to President of India. 2. Getting the memorandum to be forwarded by the MPs to FM. 3. Mobilization of Public/Customer opinion by distribution of leaflets as per common text to be translated in local language by the bank level constituents. 4. One week mobilisation programme in New Delhi during Budget session from 9 th to 14 th March, Massive Dharna and Rally before Parliament on 10th March, Direct action in all RRBs on the date RRB Act amendment Bill is tabled before the Rajya Sabha. President called upon all the constituents of JFGBU to observe the programme with full conviction and commitment to make it all out success. With New Years greetings, (SK Bhattacharjee) PRESIDENT

7 Sri Pranab Mukherjee, Hon ble President of India, Rashtrapati Bhavan, New Delhi P a g e JOINT FORUM OF GRAMIN BANK UNIONS (FORUM OF ALL UNIONS OPERATING IN RRBs) MEMORANDUM PROPOSED AMENDMENT OF SECTION 5 & 6 OF RRB ACT 1976 BY ADOPTING RRB ACT AMENDMENT BILL, 2014 Hon ble Sir, Regional Rural Bank (RRB) has been established with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs, and for matters connected therewith and incidental thereto. In view of above, the capital issued by a Regional Rural Bank under sub-section (1), shall be fifty per cent by the Central Government; fifteen per cent by the concerned State Government and thirty-five per cent by the Sponsor Bank. But, by way of amendment of THE REGIONAL RURAL BANKS (AMENDMENT) BILL, 2014 (Bill No. 188 of 2014-tabled in Loksabha) it has been proposed to decrease the Union Government and Sponsor commercial bank s equity, presently 50% and 35% i.e. total 85%, to 51%. The rest 49% including 15% held by the State Govt. may be disinvested. In this regard the relevant portion of the Bill is reproduced for your ready reference. Amendment to section 5 3. In the principal Act, in section 5, (a) for the words five crores of rupees divided into five lakhs of fully paid-up shares of one hundred rupees each, the words two thousand crore of rupees, divided into two hundred crore of fully paidup shares of ten rupees each shall be substituted; (b) in the proviso, for the words twenty-five lakhs of rupees, and the shares shall be, in all cases, fully paid- up shares of one hundred rupees each, the words one crore of rupees, and the shares shall be, in all cases, fully paid- up shares of ten rupees each shall be substituted. Amendment to section 6 4. In the principal Act, in section 6 provides, (a) in sub-section (1), for the words twenty- five lakhs of rupees, the words one crore of rupees shall be substituted; (b) in sub-section (2), the following provisos have been proposed to be inserted, i.e.

8 8 P a g e Provided that in case the Regional Rural Bank raises its capital from sources other than the Central Government or the State Government or the Sponsor Bank, the shareholding of the Central Government and the Sponsor Bank shall not be less than fifty- one per cent.: Provided further that the Central Government shall consult the concerned State Government if the level of shareholding in the Regional Rural Bank of such State Government is reduced below fifteen per cent. (c) after sub-section (2), the following sub-section have been proposed to be inserted, i.e. (2A) The Central Government may, in consultation with the Sponsor Bank and the State Government, by notification, either raise or reduce the limit of shareholding of the Central Government, the State Government or the Sponsor Bank specified in sub-section (2): Provided that the Central Government shall consult the concerned State Government before reducing the limit of shareholding of such State Government. In case the aforesaid Bill takes the form of Act, the basic concept of establishment of RRBs would be negated. In effect the private share holding in RRBs shall take place jeopardizing its very existence. You would kindly appreciate that private investors shall only be interested in profit and consequent payment of dividend which shall make the RRBs to change the course of operation and to give a go by to the existing path of serving the rural poor, underprivileged, agriculturists & small scale industries. This will have dire consequences for the economy of the country. In view of above, we the employees and Officers of RRBs earnestly appeal to you to with hold your consent to the bill as and when the same is placed before you for your consent in larger interest of the country in general and rural people in particular. With regards, President/General Secretary Name of the Union Association Sri Arun Jaitely, Hon ble Finance Minister, Govt. of India, North Block, New Delhi JOINT FORUM OF GRAMIN BANK UNIONS (FORUM OF ALL UNIONS OPERATING IN RRBs) MEMORANDUM PROPOSED AMENDMENT OF SECTION 5 & 6 OF RRB ACT 1976 BY ADOPTING RRB ACT AMENDMENT BILL, 2014 Hon ble Sir, Regional Rural Bank (RRB) has been established with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs, and for matters

9 9 P a g e connected therewith and incidental thereto. In view of above, the capital issued by a Regional Rural Bank under sub-section (1), shall be fifty per cent by the Central Government; fifteen per cent by the concerned State Government and thirty-five per cent by the Sponsor Bank. But, by way of amendment of THE REGIONAL RURAL BANKS (AMENDMENT) BILL, 2014 (Bill No. 188 of 2014-tabled in Loksabha) it has been proposed to decrease the Union Government and Sponsor commercial bank s equity, presently 50% and 35% i.e. total 85%, to 51%. The rest 49% including 15% held by the State Govt. may be disinvested. In this regard the relevant portion of the Bill is reproduced for your ready reference. Amendment to section 5 3. In the principal Act, in section 5, (a) for the words five crores of rupees divided into five lakhs of fully paid-up shares of one hundred rupees each, the words two thousand crore of rupees, divided into two hundred crore of fully paidup shares of ten rupees each shall be substituted; (b) in the proviso, for the words twenty-five lakhs of rupees, and the shares shall be, in all cases, fully paid- up shares of one hundred rupees each, the words one crore of rupees, and the shares shall be, in all cases, fully paid- up shares of ten rupees each shall be substituted. Amendment to section 6 4. In the principal Act, in section 6 provides, (a) in sub-section (1), for the words twenty- five lakhs of rupees, the words one crore of rupees shall be substituted; (b) in sub-section (2), the following provisos have been proposed to be inserted, i.e. Provided that in case the Regional Rural Bank raises its capital from sources other than the Central Government or the State Government or the Sponsor Bank, the shareholding of the Central Government and the Sponsor Bank shall not be less than fifty- one per cent.: Provided further that the Central Government shall consult the concerned State Government if the level of shareholding in the Regional Rural Bank of such State Government is reduced below fifteen per cent. (c) after sub-section (2), the following sub-section have been proposed to be inserted, i.e. (2A) The Central Government may, in consultation with the Sponsor Bank and the State Government, by notification, either raise or reduce the limit of shareholding of the Central Government, the State Government or the Sponsor Bank specified in sub- section (2): Provided that the Central Government shall consult the concerned State Government before reducing the limit of shareholding of such State Government. In case the aforesaid Bill takes the form of Act, the basic concept of establishment of RRBs would be negated. In effect the private share holding in RRBs shall take place jeopardizing its very existence. You would kindly appreciate that private investors shall only be interested in profit and consequent payment of dividend which shall make the RRBs to change the course of operation and to give a go by to the existing path of serving the rural poor, underprivileged, agriculturists & small scale industries. This will have dire consequences for the economy of the country. In view of above, we the employees and Officers of RRBs earnestly appeal to you to please revisit the Bill and withdraw it in larger interest of the country in general and rural people in particular. With regards, President/General Secretary, Name of the Union Association

10 10 P a g e Circular # 04: th January 2015 RRB ACT AMENDMENT BILL 2014 We reproduce hereunder the text of All India Bank Officers Confederation Circular No. 05, dated 16 th January, The Regional Rural Banks (RRB) were set up in 1975 with a purpose to provide Banking Services to the people living in the hitherto uncovered areas of the country with emphasis on rural and semirural centres. RRB Act was passed by Parliament in Altogether 196 RRBs were set up all over the country. As per the provisions of the Act, authorized share capital of the RRB s is Rs. Five crore with paid up being only Rs. One Crore. Stake Holders are Government of India to the extent of 50%, Sponsor Banks to the extent of 35% and the respective Sate Government to the extent of 15%. Government of India undertook an exercise to amalgamate Regional Rural Banks over a period of five years reducing the number of RRBs to 56 as on 31 st December, The Government of India introduced Regional Rural Bank Amendment Bill 2013 in the Lok Sabha on 22 nd April, The bill proposes to increase the authorized share capital of RRBs from Rs. Five Crores to Rs. Five Hundred Crores and the paid up capital from Rs. one crore to Rs. 100 crore. It also makes provision for disinvestment of the capital of the RRBs from the existing stake holders with a rider that the combined share holding of the Central Government and Sponsor Bank should not be less that 51%. It also provides for dilution of the share capital of the State Government and make disinvestment of the capital of RRBs to the extent of 49%. The other provisions of the bill are regarding the tenure of the Directors on the Board and continuation of the term of the Chairman of RRBs on deputation from Sponsor Bank from initial five years to an indefinite period. The Officers Associations and the Employees Unions of the RRBs took to cudgels to fight the RRB Act Amendment Bill immediately after its introduction in April After our persuasion, the bill was referred to the Standing Committee of Finance under the Chairmanship of Sh. Yashwant Sinha for examination. Memorandum was submitted jointly by all the Associations and Unions of RRBs demanding withdrawal of the bill. During the tenure of the last Lok Sabha, the bill did not come up for further consideration. However, the Government of India tried to get the bill passed after the Union Cabinet approved RRB Amendment Bill, The bill was placed before the Lok Sabha and was passed by a voice vote on 22 nd December, Now it will go to the Rajya Sabha for passage and to the President of India for his consent before it becomes law. All the Unions and Associations in RRBs vociferously protested against the bill. Joint memorandum was placed after demonstration was held before Head Office and Regional Offices of RRBs all over the country. Memorandum was also submitted to the President of India protesting the unbending disinvestment of the RRBs which changes the objective and purpose of the establishment of the RRBs. The RRB Amendment Bill shall in essence alter the mode of functioning of RRBs and make them replicas of the Public Sector Commercial Banks. This will negate the very purpose of their functioning. All the Unions and Associations of RRBs held a joint meeting in New Delhi and decided action programme which includes Dharna & Rally before Parliament on 10 th March, 2015, preceded by submission of Memorandum to Finance Minister and Prime Minister through MPs and followed by direct action on the day the Bill is placed before Rajya Sabha. We extend all our possible support to agitating Comrades of RRBs. We call upon all our Affiliates to be in touch with our Organisations in their respective sponsored RRBs for any help and guidance.

11 11 P a g e Circular # 05: th January 2015 NEGOTIATIONS ON WAGE REVISION UFBU S COMMUNICATION TO THE CHAIRMAN, IBA UFBU MEETING ON 19TH JANUARY TO DECIDE ITS COURSE OF ACTION We reproduce hereunder the text of All India Bank Officers Confederation Circular No. 06, dated 16th January, Please refer to our Letter No. 2015/15 dated , whereby, we requested the Convenor, UFBU to decide on our agitation programme as preparatory exercises to our four days strike from 21st to 24th January, The issue was pursued with other constituents of UFBU as well. We are pleased to inform you that the Convenor of UFBU vide its Letter Ref. CM/IBA/2015/105 dated has once again requested the IBA to convene an urgent meeting to resolve the issue of Salary Revision. We append below the text of the Letter for your information. We also wish to advise you that the meeting of the United Forum of Bank Unions has been convened on 19th January, 2015, at 5 p.m. at Mumbai to take stock of the situation, to decide further steps to be taken to make the scheduled strike from 21st to 24th January, 2015, a grand success and also to chalk out future course of action programmes. We shall keep you apprised of the developments in this regard.

12 12 P a g e Circular # 06: th January 2015 MEETINGS OF THE SUB-COMMITTEES ON SERVICE CONDITIONS WITH IBA MEETING OF THE UFBU HELD ON 19 TH JANUARY, 2015 AT MUMBAI We reproduce hereunder the text of All India Bank Officers Confederation Circular No. 08, dated 20 th January, Please refer to our earlier circulars, whereby, we informed you that Sub-Committees formed to discuss peripheral issues covered in the Charter of Demands will be held simultaneously with the Wage Revision demands. Accordingly, Sub-Committee meetings of the Officers and Workmen were held on 14 th January, 2015 and 19 th January, A UFBU meeting was also held in the evening of 19 th January, 2015 at Mumbai to take stock of the present situation and to decide modalities and action programmes with regard to the proposed four days strike from 21 st January, 2015 to 24 th January, The Convenor of the UFBU has issued a Circular No. UFBU/2015/44 dated detailing, therein, the developments of the above two meetings, text of which is appended here below: IBA ASSURES EXPEDITIOUS WAGE SETTLEMENT FOUR DAYS STRIKE FROM 21 ST TO 24 TH JANUARY 2015 PUT ON HOLD In our previous Circular, we have informed that while agreeing for formation of Sub-Committees for other issues relating to wage revision, we had suggested for holding of Meetings of Sub-Committees immediately without any loss of time. Accordingly, IBA called for Sub-Committee meetings on 14 th January 2015 to discuss on issues relating to demands of Officers as per charter of demands and on 19 th January 2015 to discuss on Health Insurance in lieu of Reimbursement of hospitalisation expenses and issues relating to Workmen employees as per charter of demands. Health Insurance Scheme: Members are aware that our charter contains demands for improvements in existing Medical Scheme and extension of 100% reimbursement facility for family members. IBA proposed for introduction of Medical Health Insurance Scheme and provide for wider coverage. In this background a Sub-Committee Meeting headed by Shri Arun Tiwari, Union Bank of India representing the IBA and all the Nine General Secretaries representing constituent Unions/Associations of UFBU was held on the 19 th January After thorough deliberations, UFBU pointed out the loose ends to be tied up and suggested for further improvements in the scheme. IBA assured to take up the issues with the concerned and have another round of discussions. Meetings on Service Conditions of Officers And Workmen: In the meetings held separately on 14 th and 19 th January 2015 with Officers Organisations and Workmen Unions respectively, the issues relating to Disciplinary Matters of Officers, Regulated Working Hours, 5-Day banking and Improvements in Leave Rules were discussed. Further discussions are to be continued.

13 13 P a g e IBA also assured that they would further pursue the matter with Government and deliberate in the Managing Committee Meeting of IBA to be held on the 31 st January 2015 with all sincerity and hold discussions with us in the first week of February 2015 to improve the offer further to reach finality. UFBU Meeting Held on 19 th January 2015: In this background, the representatives of constituent unions of UFBU met in Mumbai on 19 th January Extensive and comprehensive discussions were held to review in detail the developments on the Wage Revision front starting from the Conciliation held by the Chief Labour Commissioner (Central) in New Delhi on 5 th January2015, followed by the Negotiations with IBA on 6 th and 7 th January 2015 and also the Sub-Committee meetings held thereafter. It was unanimously opined that the IBA had to improve their offer from 11% to 12.5% because of the strenuous efforts of UFBU through strike actions/decisions. The meeting also attributed the credit for the change in the adamant stance of IBA to all the members who made the strike a total success through their enthusiastic participation. In the background of the assurance given by IBA towards expeditious wage settlement and also considering the positive developments since the conciliation meeting held on 5 th January 2015, it was unanimously decided by the UFBU to put on hold the Four days continuous strike from 21 st to 24 th January It was further decided to vigorously pursue the issues relating to regulated working hours for officers and 5-day banking along with satisfactory increase in offer from 12.5% of pay slip components. It was also decided to revive the strike action if there is no satisfactory outcome in the next meeting and go ahead with 4/5 days strike in the month of February Comrades, the united and determined struggle of all Officers and Workmen alone would bring success in achieving our goals and target. Be United - March ahead with solidarity and unity Success will be ours. You must have come to know by now that our Confederation strongly took up the position of adhering to the strike call through the views expressed by your Representatives in the meeting. However, other organizations were not in agreement with our views. After making all efforts to convince other constituents of UFBU to implement the strike call and considering all the pros and cons of our organization going on strike along with only one Award Staff Union (NOBW) will not serve the purpose and will also send signals against the Unity of UFBU. We with very heavy heart agreed to withhold the four days strike with certain conditions. The Convenor of the UFBU has incorporated our feelings and conditions viz. resolving Five days banking and regulated working hours for the officers along with reasonable Salary Revision in the first week of February, 2015, failing which minimum four days strike (with 15 days requisite notice period) would be revived, in the Letter addressed to the Chairman of the IBA. Text of the letter ref. CM/IBA/2015/109 is appended below: Comrades, in democratic Organisations like UFBU which consists of Officers Organisations and Award Staff Unions with different backgrounds and political Affiliations, differences in opinions are bound to be there. However, we assure you that we are committed to the cause of Workmen class in general and our members in particular to achieve a better service conditions.

14 14 P a g e Circular # 07: st January 2015 OPEN SESSION OF 10 TH TRIENNIAL CONFERENCE AT CHANDRAPUR ON 31 ST JANUARY, 2015 The city of Chandrapur is unique in importantce in view of its history, culture and rich traditions. Now the city is famous for adjoining coal mines, thermal plants and large number of industrial units. The city of Amba Mata is famous for hospitality. Such great city played host to the 10 th Triennial Conference of our Federation over the two days of 31 st January & 1 st February, Two days before the Conference myself reached Chandrapur at midnight. Next morning I was amazed by the colourful banners & festoons announcing the impending Triennial Conference popping up from every available spots in the city. Press Conference was organised on 30 th January, afternoon at sprawling Conference Hall of Hotel Siddarth. The Press Conference was jam-packed with scribes of different electronic and print media. The President and General Secretary of the Federation presented a Press Release followed by question answer session. The representations of electronic media took interview of both the President and General Secretary. The Press Conference was a grand success. The same evening extension coverage was made in the electronic media and all the leading Hindi, Marathi as well as English dailies carried the Press Conference and the issues of RRBs highlighted by us. Delegates & observers from every nook & corner of the county started arriving in the city of Chandrapur from 31 st January, morning. The Central Committee of AIRRBOF met at the Banquet Hall of Hotel Siddarth in the morning of 31 st January, Com. G.V. Manimaran, Sr. Vice- President, AIBOC & Chairman, AIRRBOF also participated in the Central Committee. The Meeting took place with Com. R.G. Makhija on the chair. The statutory issues of the Agenda were duly discussed and adopted in the Meeting. The Meeting ended by 2:00 pm. The colourful rally on the occasion of the Triennial Conference with hundreds of participants started with full throated slogans from Van Bhavan, Nagpur Road. The entire 2.5 km. stretch of the Rally was decorated with festoons, banners, arches and decorative gates. The rally was led by Colourful Band and open jeep where President of AIBOC Com. Y. Sudarshan, Chairman, Com. Manimaran, President, Com. Makhija and our beloved General Secretary, Com. Bhattacharjee stood on the front dias. The literally roaring voice of the participants ventilating their issues and expressing their disgust over the apathetic attitude of the Management winded through Chandrapur city to the Venue, Shri Gajananrao Buradkar Sabhagruha. The rally ended at the entrance of the Venue. The Hall and the adjoining lawn and ways were beautifully decorated with flowers, banners and arches. The colourful Banner Welcoming the Chief Guest and our leaders welcomed delegates, observers and participants. A large number of lady comrades also participated. The Hall was overflowing with the participants. With ushering in to the Dias of the President and other dignitaries, the traditional lamp, signifying the commencement of the open session, was done by Com. Y. Sudershan, President, AIBOC and other dignitaries on the dias. Thereafter, welcome song was rendered by Vidharva Konkan Gramin Bank (VKGB) officers and their families. The Conference was set in tune with unique presentation of

15 15 P a g e the Welcome Address by our General Secretary, Com. Bhattacharjee. In his greatly motivating speech Com. General Secretary highlighted the issues of the officers, the need of the organisation, the unfair competition faced by RRBs and gave a clarion call to participants to unite, organise and march on to achieve our issues. Com. Y. Sudershan, President, AIBOC and General Secretary, All India State Officers Federation (AISBOF) in his inimitable style brought out the issues concerning officers of Banks in general and RRBs in particular. He pledged to extend full support & co-operation to the AIRRBOF both by AISBOF & AIBOC. He pooh poohed the restructuring process of RRBs undertaken by the Govt. and demanded immediate merger of RRBs with Sponsor Banks. Com. G.V. Manimaran, Sr. Vice-President, AIBOC & Chairman, AIRRBOF rendered an exhaustive analysis of the issues before officers and offered unique solution to them. He laid emphasis on the fact of emerging officers strength in the Banking Industry and came down heavily on the attempt of Govt. and IBA combine to deny salary revision in the Banking Industry. He called for militant march on by officers to snatch their rights. Shri S.D.S. Caraparcar, Chairman, Vidharva Konkan Gramin Bank, spoke very spiritedly about the competence of the officers of RRBs and complimented them for providing best possible customer service. He acknowledged that he would have been happier to attend the Conference as an ordinary member of AIBOC than as Chairman, VKGB. At the beginning of the open session all the guests and dignitaries were duly felicitated. The open session was concluded in great style with rendering of Vote of thanks in flowery Hindi by Com. B.P. Singh, General Secretary, All India RRB Pensioners Federation. The open session ended in grand scale with announcement of ensuing delegate session to be followed on the next day. PRESS CORNER: LONG LIVE AIRRBOF AFTER 15 YEARS, BUDGET TO BE PRESENTED ON A SATURDAY After a gap of 15 years, the Budget will be presented on a Saturday on February 28. The Cabinet Committee on Parliamentary Affairs on Wednesday recommended to the President the schedule of the first session of Parliament in Though the General Budget, or the Annual Financial Statement, is usually presented on the last day of February as the financial year begins from April 1 and ends on March 31, it usually happens on a weekday. The Centre follows the five-day week system Monday to Friday. However, it was in 1999 that the then Finance Minister Yashwant Sinha last presented a Budget on a Saturday. It was in the same year that the long-standing tradition of presenting the Budget at 5 pm was done away with. It has since been presented at 11 am.

16 16 P a g e This year, the Budget session will begin on February 23 with the traditional Presidential Address to both the houses of Parliament. The Railway Budget will be presented on February 26 followed by the tabling of the Economic Survey on February 27. The first leg of the session will end on March 20. After a one month recess, both houses of Parliament will reassemble on April 20 and the session will continue till May 8. The recess period is used by Standing Committees of Parliament to consider expenditure provisions for various Central Ministries/Departments and also the Finance Bill. Though, the Centre is not bound to accept the committees suggestions there is a convention to accept some of them and amend the provisions of the Budget accordingly. Source- The Hindu Business Line, 22 nd January, WHY BANKS HAVEN T FOLLOWED RBI TO CUT RATES For all the noise over the RBI s reluctance to cut rates in the past year, there has been very little concrete action by banks after the central bank s surprise cut of 25 basis points in the key policy rate, made a week ago. Barring two public sector banks, Union Bank and United Bank, which cut base rates by 25 basis points, others are still dragging their feet and waiting for cues from State Bank of India, the country s largest bank. Unlike in the past, when public sector banks were more aggressive and nippy in passing on rate cuts, muted credit growth and higher stress in the system are likely to weigh on their minds this time around. A look at the data put out by RBI on banks lending rates since 2008 shows that public sector banks have been more active in passing on RBI s rate actions than their private counterparts. Consider, for instance, the period between September 2008 and September The RBI had cut the repo rate by a steep 425 basis points during this period. On an average public sector banks lowered their lending rates by 128 basis points during this period, while private banks cut their loan rates by just 60 basis points. Or the period between March 2012 and June 2013, when repo rate was cut by 125 basis points: While PSU banks cut lending rates by about 30 basis points, private banks in contrast raised their rates by 30 basis points. This difference could be due to a couple of reasons. One, while strong operational performance and higher share of low cost deposits has helped private banks hold their margins steady, they also appear to be tight-fisted in passing on rate cuts, to keep their margins intact. On an average the net interest margins is about basis points higher for private banks than public sector ones. Two, during a rate cut cycle, the overall risk in the system is usually higher. In the current scenario for instance, the economy has been in a protracted slowdown, and banks thus yearn for a higher spread to compensate for the risk. Private Banks in particular have been quicker to assess the risk as also to price it in. To keep spreads higher, these banks would not lower their lending rates in a hurry.

17 17 P a g e Aside from the lax risk assessment systems in public sector banks, tacit pressure from the government has also forced them to lower rates in a hurry. In July 2013, the then finance minister P Chidambaram urged public sector banks to lower their base rates. This was because even after the RBI cut its repo rate by 125 basis points since March 2012, banks had cut their lending rates only by 20 basis points. Many public sector banks dutifully reduced their base rates, only to face a rude shock when the RBI suddenly hiked short term rates through its liquidity tightening measures a few days later. This time around, public sector banks may have plenty to consider before they start to cut rates. For one, bank credit growth has slipped to 10 per cent in December A cut in lending swill stress margins even more for public sector banks, already struggling to keep them intact. Two, with stressed assets at over 10 per cent of loans, public sector banks are already earning less. While many banks have lined up meetings of their asset-liability committees this week to review their lending and deposit rates, all eyes are on SBI, which was the first to lower its deposit rates in September last year. Source- The Hindu Business Line, 17 th January, COMING SOON, LEG UP FOR INSURANCE AGENTS THAN INSURES Being an insurance agent could be back in vogue. A key recommendation included in the proposed Insurance Amendment Bill empowers the insurance regulator to decide the commission structure. This is likely to give a boost to life insurance agents, whose numbers have been on the decline over the last four years. Currently, according to the Insurance Act, the agent s commission in the first year is capped at around 40 per cent, if the insurer isles than 10-years-old, and 30 per cent for other insurers. Subsequently, in the second and the third years, the commission drops to 7.5 per cent of the premium, and to 5 per cent for the rest of the term. IRDA Chairman TS Vijayan, recently said that the regulator is in favour of allowing insurers the freedom to pay out agency commission within the overall expense cap for insurers. Insurance is not an easy product to sell. If the regulator is given freedom to decide the agency commission on a case-to-case basis than insurers can seek approval for a differential commission structure from IRDA while launching new products. This will help agents sell more, said V Manickam, Secretary General, Life Insurance Council. The committee comprising select members of the Rajya Sabha, headed by BJP Leader Chandan Mitra, tabled its report on the Insurance Bill in the upper house on Wednesday. Tarun Chugh, CEO and Managing Director, PNB MetLife, said that if the move is implemented, it will help in augmenting the current earnings of an insurance agent leading to higher retention. Also, through the performance-based remuneration model, insurance companies can hire high performers and reduce the overall maintenance cost for running the channel, he said.

18 18 P a g e Freeing up the commission structure will lead to commissions for agents being link to policy persistency and renewals. This will end the heavily front-loaded commissions and also help reduce agency attrition, said Sanjay Tripathi, Senior executive Vice President, HDFC Life insurance. The IRDA annual report for estimated the total number of new agents appointed by Life insurance companies at 5.65 lakh, while the number of agents terminated stood at 8.01 lakh. There was a per cent drop in the number of individual agents to lakh as on March 31, 2013 from lakh on the same date of previous year. The Insurance Bill also proposes a hike in the FDI limit. Rajesh Sud, Managing Director and CEO of Max Life Insurance, said the Bill will provide more powers to the regulator which will help in closely regulating and providing flexibility to the industry. Source- The Hindu Business Line, 11 th December, MAHILA BANK AIMS FOR 80 BRANCHES THIS YEAR Bharatiya Mahila Bank (BMB) plans to close the current fiscal with a network of 80 branches, said Chairperson Usha Anathasubramanian. Launched last year, this 100 per cent Government owned bank started its operations with seven branches, and added two branches before the close of financial year At the inauguration of the Coimbatore branch, she said: This is the36th branch of the bank and the second in Tamil Nadu. The Pune branch is scheduled for launch the day after, followed by branches in Bhopal, Haridwar, Jamsedpur and Nagpur. In Tamil Nadu, the bank plans to add two more branches this fiscal, one each at Trichy and Madurai. We intend to double the branch network to 80 before March The pace of expansion is going to be aggressive, she said. Twenty of these (branches) would be in rural, unbanked pocket, she said. Its business at present is around Rs.870 crore, and Usha said the bank s target is to reach Rs.1800 crore before the close of the current fiscal. Initially, the bank engaged personnel from various public sector banks. But Usha said, now the bank plans to have its own staff. The process of open recruitment for the post of branch managers and second line staff is underway. We are a team of 303 at present. We will be recruiting 30 to 40 personnel in the managerial cadre and 70 more second line staff, she said. She said that so far applicants from private sector banks had responded to job offers. It will probably take us 3 to 4 years, to have our own people, she said. The bank has inked an agreement with New India Assurance to cover women account holders. It is yet to finalise a partner for the life insurance business.