WHY IBA IS NOT UNDER RBI?

[Srinivasa Murti Devulapalli]

My Dear Friends,

WHY IBA IS NOT UNDER RBI?   

I annex here the article contributed by our senior learned friend Sri Kalyana Sundaram garu which is of utmost importance in the current scenario 

Once IBA comes under the purview of RTI, more transparency in its functioning can be ensured.  We will find answers to many un-answered questions IN THE PAST. 

Click the following link for more details.  

I take this opportunity to thank Sri Kalyana Sundaram garu for his laudable efforts in this regard. 

Friends, we shall continue our efforts surmounting the hurdles in our pathway to reach of goal ultimately.... WITH THE DEVINE BLESSINGSOF  MATHA KANAKA DURGA ... ABODE  इन्द्रकीलाद्रि विजयवाद  INDRAKEELADRI - VIJAYAWADA .

LET US HOPE THAT ALL OUR COLLECTIVE EFFORTS WOULD ULTIMATELY CULMINATE INTO SUCCESS IN THE SOLE INTEREST OF JUSTICE AND FAIRPLAY...

“|| यतो धर्मस्ततो जयः ||”IS THE ULTIMATE......
 
I remain - Yours,
దేవులపల్లి శ్రీనివాసమూర్తి /Devulapalli SrinivasaMurti.                     
 FEBRUARY 28, 2021 
Ramavarappadu- Vijayawada  521108 

Contact # 9989318300  

 

 

https://drive.google.com/file/d/1B7LKoO1nE2SPTg356j-VAWcUdy-hd85e/view?usp=sharing

 

 

Why is Indian Banks’ Association not under RTI?

By S Kalyanasundaram    Published in Business Line on February 25, 2021

As a body representing banking industry, IBA’s claim that it’s only a voluntary body and not subject to oversight isn’t convincing

Is the Indian Banks Association (IBA) a law unto itself? In a recent proceeding conducted by the Chief Labour Commissioner (Central), New Delhi, as directed by the Allahabad High Court, the IBA submitted a statement, which in Para 8 states: “That it is stated that Government does not exercise control over the functioning of IBA.”

 

 

Should the statement be understood as a claim that the IBA is not answerable even to the Government of India? Can any institution functioning under the laws of the country say that it is not answerable to the government?

The IBA claims it is a voluntary association of member banks. It also claims that it is neither a governmental entity nor a regulatory authority, and it is not amenable to writ jurisdictions of courts and not subject to the Right to Information Act, 2005.

Currently, the IBA has as its members public and private sector, foreign and urban co-operative banks, as also asset reconstruction companies, credit rating companies, credit guarantee funds, financial services companies and credit bureaus.

 

The IBA lists 19 items as its objectives. The major objectives are to: Render assistance and provide various common services to the banking industry; develop and implement new ideas and innovations in banking services, operations and procedures; coordinate on procedural, legal, technical, administrative or professional problems faced by banks; and initiate advance planning for introduction of new systems or services in the banking industry.

 

Thus, it covers the entire gamut of the banking industry and banks practically follow the advice of the IBA in all these areas, of course subject to regulatory guidance from the Reserve Bank of India.

 

Off and on, the IBA makes various recommendations to the government and the RBI over various banking-related matters like treatment of non-performing assets, formation of Bad Bank, etc. The IBA conducts wage negotiation with workers’ and officers’ unions, and signs a wage pact called Bipartite Settlements and Joint Notes. The IBA claims that this is as authorised by banks.

The IBA is financed by member banks. The public do not know the financial status of this Association, though all PSBs and listed private banks contribute to its functioning. All along, the IBA has been claiming that it does not come under the RTI Act. So far, the IBA has not designated any Central Public Information Officer (CPIO).

In the RK Jain versus Indian Banks’ Association case, the Central Information Commission considered whether the IBA comes under the RTI Act. The Commission, in its order of November 13, 2017, said: “Taking into account that the IBA performs functions as state agency and its majority control vests in Government of India-appointed Managing Directors of public sector banks, the IBA qualifies to be a public authority under the RTI Act, 2005". 

 

The Commission, therefore, directs the IBA to designate an official of the IBA as the CPIO at the earliest as per provisions of Section 5 of the RTI Act, 2005 and also to comply with Section 4 of the RTI Act, 2005 within four weeks of the receipt of the order of the Commission.”

Further, the Commission held: “So far as control part of appropriate government is concerned, it is noted that the IBA is an agency or instrumentality of the state. The appropriate government controls it as majority of Managing Committee members are Managing Directors of public sector banks, who in turn are Government of India employees...”

Court stays order

Instead of appointing a CPIO, the IBA filed a writ petition before the Delhi High Court (WP No 11046/2017), and on December 13, 2017, the High Court stayed the CIC order. While granting the initial stay, the court observed the following (among other observations): “The short question involved in the present case is whether the petitioner is a public authority within the meaning of Section 2(h) of the Right to Information Act, 2005. It is stated that the petitioner is an association of banks. It has 241 members and only nine members are public sector banks.” 

The case is yet to be decided.

The number of PSBs mentioned here seems to be factually incorrect and in all probability this should have been from an incorrect affidavit. Before the merger of 10 PSBs into four banks effective April 1, 2020, there were 16 PSBs. 

Moreover, it may not be appropriate to compare the number of public sector and private banks.

Ideally, how the positions are held or who controls the IBA should have been considered and also the financial contribution to run the IBA. More than 50 per cent of the management committee members are from PSBs.

The amount of money that flows from PSBs to this institution is not available in public domain.Transparency and accountability in administration is sine qua non of a participatory democracy. 

The Government must instruct PSBs that are in the Managing Committee of the IBA suitably and ensure that the institution comes under the RTI Act. When PSBs are under RTI, why not the IBA?

The writer is a retired banker

https://drive.google.com/file/d/1B7LKoO1nE2SPTg356j-VAWcUdy-hd85e/view?usp=sharing

 

 

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d s murti

https://drive.google.com/file/d/10tfw8nrm4F3z_YOqqFbkDJPVnk2CpHmF/view?usp=sharing

[Srinivasa Murti Devulapalli]

WHY IBA IS NOT UNDER RBI?   PLEASE READ AS  RTI INSTEAD OF RBI....

ERROR REGRETTED. 

D S MURTI. 

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d s murti

[KrishnaSwamy K R]

My Dear colleagues,

Through this media, I wish to put forth my views on pension updation in the current situation.

1. In 1993, when the pension scheme was originally introduced , it was clearly mentioned in the agreement that the scheme is in the RBI / Central Govt model. Naturally, Updation matter is also to be followed in RBI MODEL - Mar 2019.

2. Pension funds created in PSBs are similar to RBI pension funds. Updation cost in RBI reported a 17% load on pension funds by updation. By applying the same formula in PSBs load on pension fund shall be more or less the same.  There is no impact on the Bank"s yearly P&L or Balance sheet. 

3. RBI has not sanctioned ARREARS of pension upto Feb 2019.  This arrears remains in the pension fund which forms additional corpus to pay future  pension.  PSBs may take note of this important financial position.

4. IBA estimated 95000 crores as updation cost. Approximately 4.5 lakh pensioners are getting pension. By simple division, average updation comes to 21 lakhs per pensioner per annum or 1.75 lakhs monthly pension average. Here 1.5 lakhs family pensioners are also included.   This is a highly impossible figure quoted by IBA to confuse DFS?!?!

5. IBA, established on 26 Sep 1946, is not funded by GOI.  Now,  IBA is funded by 247 banking companies including PSBs in the form of  subscription fees +  bipartite expenses to the tune of several crores of rupees every year to meet establishment expenses of just 31 members of the Managing Committee Executives and staff in IBA. These details are available through RTI  in this blog elsewhere.  Naturally IBA is in favour of PSB management. This may be a reason for postponement of updation. 

6. IBA may invite retiree unions to listen to their legitimate demands and grievances and settle the updation exercise in the RBI model which is mostly agreeable to all.  OROP is also satisfied. 1993 agreement is also fulfilled. The arrears portion till Feb 2019 remains with the pension fund itself which will look after future pension payment.

7.  Family Pension is based on Retiree Pension.  There is no meaning in FP updation - keeping Main Pension unrevised.  Only duplication of work.  It is rational to revise/ update Main Pension and Family Pension together - once for all.  

This act of IBA will further create goodwill about their respective banks, from the perspective of pensioners. 

8. Court judgements clarified - Pension as deferred payment of wages to maintain the same standard of living after retirement of the employee.  EPF deducted in service is funded as Pension Fund. Pension Fund is created by Employees monthly contribution while in service of the employee.  This Pension Fund management lies with PSBs to enable them to pay future Pension.  Court judgement says Pension Basic at any time is not less than 50% of Basic Pay in the time scale. This implies Service basic pay  and pension basic pay are  interrelated and inseparable. To be revised alongwith BPS.  This is OROP.

9. As per Code of Wages Act 2017, standard of living is to be maintained and pension updation is inevitable. CPC, Central Govt., State Govt., Education Dept. all are drawing 60K and odd pension every month, see the pitiable condition of so called whitecollared bank employees.  Is this not a shame on the part of IBA ?!?

  Sab Ko Sanmathi De Bhagawan !!!    Sab Ko Sanmathi De Bhagawan !!! 

06/02/2021   

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[Debasish Mukherjee]

Mr.KrisnaSwami KR we most of the retirees are aware of what has been stated in the original pension regulation 1993 and subsequently amendments. We are also aware of that PSU Banks pension regulations has been adopted and executed in accordance with the regulations executed for the RBI pensioners. Even though the retirees also suggested to grant updation in line with updation granted to the RBI pensioners with prospective date i.e. without arrears but the IBA nor the Finance ministry is not willing to grant updation to the PSU Bank pensioners. In any case present situation has reached to such a serious crisis that the retirees will be willing to accept updation in any condition but the Govt/finance ministry is not at all willing to grant retirees updation.

What has prevented the IBA to undertake for the retirees updation? Govt. & finance ministry are playing dirty politics with the retirees distress. This only strengthened suspicion that the Govt./ Finance ministry permitted embazzlement of pension corpus with the Banks to the tune of more than Rs.2,50,000=00 crores.

Debasish Mukherjee,

mumb...@rediffmail.com

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[Ramarao Velagapudi]

11-3-2021

Hyderabad

IBA IS a public authority. Please peruse the enclosure

On Sun, Feb 28, 2021 at 12:24 PM Srinivasa Murti Devulapalli <devulapa...@gmail.com> wrote:

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