REFORMS IN BPS

[JSOMA SHEKARA]

DFS is introducing many reforms in the Banking Industry but what is urgently required is reforms in the Bipartite negotiations shortly called BPS. The significant characteristics of Bipartite negotiations is negotiations directly between management and Unions. In the Banking Industry management refuses to deal directly with union and retirees and a third party is dealing with Unions. How this can be called Bipartite negotiations.

The current bipartite negotiation process for wage and pension revision in the Indian banking industry, while historically a stable mechanism, requires significant improvements and reforms, primarily to ensure fairness, transparency, and timely resolution of critical issues, especially concerning pensioners

.

Key Areas for Improvement and Reform

• Pension Updation and Parity: A major point of contention is the lack of a consistent and automatic pension revision mechanism linked to wage revisions, unlike the Central Government's Pay Commission system or the Reserve Bank of India's (RBI) model. The current system often results in a significant disparity between the pensions of early retirees and those retiring after subsequent settlements.
  • Reform Needed: Implement a mandatory, formula-based periodic pension updation (e.g., on RBI lines) as a statutory provision within the Pension Regulations, ensuring that basic pension keeps pace with inflation and subsequent wage hikes. This would provide financial security and "Right to dignity" for all pensioners, a right upheld by the Supreme Court.
• Negotiation Timeliness: Wage settlements often face protracted negotiations, leading to significant delays in implementation (e.g., the 11th Bipartite Settlement was implemented years after its effective date).
  • Reform Needed: Establish strict timelines and a clear framework for the negotiation process between the Indian Banks' Association (IBA) and unions to ensure settlements are finalized and implemented promptly, ideally within the five-year cycle they are meant to cover.
• Inclusion and Representation: Pensioner associations often argue they are not adequately represented in the main bipartite talks between the IBA and working employee unions (UFBU), leading to their issues being sidelined or addressed as "residual issues".
  • Reform Needed: Create a formal, inclusive mechanism to involve legitimate pensioner representatives in discussions concerning retirement benefits to ensure their grievances are addressed directly and not as an afterthought.
• Transparency and Authority: The IBA, a voluntary association, handles negotiations for all public sector banks, and the legal force of "Joint Notes" or Memoranda of Understanding is sometimes questioned in court.
  • Reform Needed: Formalize the legal standing of the negotiated settlements and consider an independent, dedicated "Banking Pay Commission" to bring transparency, impartiality, and a consistent, legally binding framework for salary/pension revisions, similar to the Central Pay Commission for government employees.
• Scope and Consistency: The settlements should cover all applicable banks (public, private, and foreign) uniformly where the pension scheme is applicable, to avoid disparities and legal challenges.
  • Reform Needed: Ensure consistent application of agreed-upon terms across all signatory banks and work with the government to address regulatory differences that currently create ad-hoc solutions like ex-gratia payments instead of a permanent pension revision.

Implementing these reforms would lead to a more harmonious industrial relations environment, improved employee morale (both working and retired), and greater stability within the critical Indian banking sector.

[Satyanarayana Rao]

All the reforms sujested by u are wonderful and very much needed.

But neither the unions not IBA nor the government is interested as they want to exist and continue to gain their importance and create more and more confusion and gaps in settlements.

Nobody is accountable but all the three stakeholders ie UFBU,IBA and the government wants to play mischief and betraying the real cause of negotiations.

The spirit of understanding and the inclination to address the real issues of pensioners and working staff are highly deplorable.

Nothing will change and the issues will continue without any solutions.

Yahoo Mail: Search, organise, conquer

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[Ramakrishnan S]

Nice! But rats ( especially old!) can tie a bell to the cat? 

Regards. 

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[Saibabu Madiraju]

Solution is very much there. If we all unite and either in what's up or any sical media reach delhi SC and all ie approx 10 lakhs ie including families, sit before SC one day. If no pensioners is interested in spending one day they deserve No pension updation at all

On Wed, 17 Dec, 2025, 9:41 am 'Satyanarayana Rao' via bankpensioner, <bankpe...@googlegroups.com> wrote:

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[MOHAN P]

Dear Mr Saibabu,

We can imagine a lot of things.Let us think about practical aspect of protest in any manner . Our organisations are currently doing it. Out of eight or seven lakhs pensioners how many persons can use internet/social media or whatsapp as of now?Forget about their families.

Have you ever seen or observed about the real number of pensioners participated in demonstrations held at  Jantar Mantar New Delhi as per call given by our Retirees Apex Organisations that too with lot of repeated communications and reminders?

It may come around only in hundreds or thousand in numbers.Can we blame any one?You are talking about 10 lakhs pensioners coming all the way to New Delhi for one day to sit before SC,who are on their 70's and 80's now!

Let us think about exploring the existing mechanisam either through legal front or negotiations in effective and time bound manner.

Regards,

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[Saibabu Madiraju]

Thank you sir, I agree with you. Now I feel those who are 60+ we can count them can be around a couple of lakhs. If we can plan to mobilize then, it will definitely touch others, that way we can at least have some hope. I don't know how to proceed. I am happy to receive any advice sir. Regs

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[JSOMA SHEKARA]

We have to think about practical and working solutions. If at all you want to take out a rally, do it before the AIBEA and AIBOC and IBA offices like RBI employees/retirees  did in front of their regional offices. Not Jantar Mantar. 

Punjab and Chandigarh High Court has observed that  Petitioners instead of negotiating with management should not have come to us citing article 226. DFS also has replied in Parliament that if a proposal is submitted by IBA it will be considered. So the message is very clear. Bank retirees' demands are decided in BPS  between iBA and UFBU. Initiative should come from  UFBU not from CJI .IBA or DFS.

It does not matter how many representations retirees submit to DFS, demand /recommendations is valid if it comes  from UFBU and IBA. UFBU should  have taken a delegation to DFS exclusively for updation. 

AIBOA  as an authorised union to negotiate issues should not have filed another new case, AIBOA could have joined M C Singhla case and filed a reply to UBA affidavit.Unless UFBU take issues seriously nothing will happen on negotiation front.

As regards SC case petitioners have lost twice in High court. Again Same old weak arguments like parity with Central Govt pensioners, Reg 35/1,  Parity with RBI etc. Who does not want arrears if we succeed in  M C Singhla case? But indefinite adjournments some times because of petitioners and respondents and some times because of court listing procedures making lakhs of pensioners frustrating.

Nothing is going right on the litigation or negotiation front.

I suggest at least submit a thousand letters to AIBEA and AIBOC to take up updation and merger of DA issues positively in the next meeting as no  ground for sub judice exists unless there is astay from SC.

Only AIBEA and AIBOC can resolve  issues.

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[Niranjan Cn]

Good Morning,

Wishful Thoughts.

We should analysis why Pension Updation is not taking place ?  and reasons thereof. There is a need to define - what is 'Updation' also.

Unless the above aspects are clear, remedy will be elusive/confusing only.

Niranjan

[Ramani Konnayar]

To my knowledge and understanding, no negotiations took place between IBA and UFBU (although demand was made in every BPS negotiations and the item included in residual issues)in the matter of 100% DA to pre Nov 2002 retirees.

But, suddenly, a meeting was held during the first half of 2023 between them and a MOU was signed and sent to DFS for approval. This was apparently not preceded by any negotiations(as per records available in public domain)and the decision not to give any arrears was probably taken by DFS. It is widely believed that the initiative/prodding came from DFS to IBA to enter into a MOU with UFBU. Later, this was incorporated in the 12th BPS.

Similarly, in the matter of updation, only if DFS gives some broad guidelines to IBA on the modalities, the latter will invite UFBU for 'negotiations'. Unless and until this happens, nothing will move forward.

K N RAMANI 

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[Niranjan Cn]

Sir, as mentioned by me earlier, unless identification of the causes for delay is over, no solutions will work out .  Once the reasons are very clear, solutions can be worked out with views from embers/pensioners.

Causes to be identified first.

Niranjan

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[Gopalakrishnan Ramachandran]

Time and again, it has been stressed that the updation is stalled only by UFBU by its lackadaisical attitude. They are not serious about retirees and they have the firepower to bring IBA to the negotiating table. But they are not ready even to solve the "small issue" of 100%DA on ex-gratia. The IBA takes advantage of the UFBU's reluctance and hides under the "subjudice" cover. So it is necessary to hold demonstrations in front of the offices of the Unions rather than shouting at the govt which  repeatedly insists for a negotiated settlement.

G Ramachandran 

CB-SVRS.

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[JSOMA SHEKARA]

First UFBU should submit  a detailed and comprehensive proposal for updation to IBA including formula for updationm load factor date of effect etc. This is a legal  requirement. Then UFBU has to follow up the issue  and if IBA rejects petition then UFBU may take up a delegation to DFS.Agitations may follow.

Simply repeating we raised the issue with IBA and IBA said cost to be studied, IBA said sub judice all these are friendly dialogues and have no value.Unless UFBU submit proposal for updation issue will remain where it was 20 years ago,

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[JSOMA SHEKARA]

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