The Government has accorded approval for a scheme of compassionate appointment in public sector banks.
The Department of Financial Services in the Union Ministry of Finance has conveyed this in a communication to the Indian Banks’ Association (IBA) dated August 7.
The scheme is effective from August 5.
While approving the compassionate appointments in public sector banks, the communication has sought to discontinue the extant provision of an ex-gratia in lieu.
The Government has also advised the IBA to take appropriate action to circulate the scheme to all public sector banks for adoption with the approval of the respective boards.
MV Murali, Convenor of United Forum of Bank Unions (UFBU), said the compassionate appointments scheme was unilaterally withdrawn by the Indian Banks’ Association (IBA) a decade ago.
Since then the workmen unions and officers’ associations under the UFBU umbrella have been demanding its restoration.
A KEY DEMAND
UBFU had included the issue as one of the prime demands in the earlier wage revision. A decision had been hanging fire after the issue was escalated to the IBA platform as well as the Government.
In the meanwhile, individual banks had, at the instance of the IBA, introduced at random payment of ex-gratia lumpsum in lieu of compassionate appointment.
The issue was later taken to the as-yet inconclusive 10th bipartite talks with the IBA for wage settlement.
After prolonged discussions, the IBA had agreed to forward to the Government recommendations for restoration of the scheme on a par with the one available to Central Government employees.
This amounts to a modification of its earlier notification for payment of an ex-gratia lumpsum, Murali said.