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Banking > Policies> VRS

Salient Features of Voluntary Retirement & Sabbatical Scheme:

1. Eligibility

All permanent employees with 15 years of service or 40 year

However following employees will not be eligible for this scheme.

i Specialists officers/employees, who have executed service bonds & have not completed it, employees/officers serving abroad under special arrangements/bonds, will not be eligible for VRS. The Directors may however waive this, subject to fulfillment of the bond & other requirements.

ii Employees against whom Disciplinary Proceeding are contemplated/pending or are under suspension.

iii Employees appointed on contract basis.

iv Any other category of employees as may be specified by the Board.

2. Amount of Ex-gratia

60 days salary (pay plus stagnation increments plus special allowance plus dearness relief) for each completed year of service or the salary for the number of months service is left, whichever is less.

3. Other Benefits

i. Gratuity as per Gratuity Act/Service Gratuity, as the case maybe.

ii. Pensions (including commuted value of pension)/bank's contribution towards PF, as the case may be.

iii. Leave encashment as per rules.

4. Other features

a) It will be the prerogative of the bank's management either to accept a request for VRS or to reject the same depending upon the requirement of the bank.

b) Care will have to be taken to ensure that highly skilled and qualified workers and staff are not given the option.

c) There will be no recruitment against vacancies arising due to VRS.

d) Before introducing VRS banks must complete their manpower planning and identify the number of officers/employees who can be considered under the scheme.

e) Sanction of VRS and any new recruitment should only be in accordance with the manpower plan.

5. Funding of the Scheme

a) Coinciding with their financial position and cash flow, banks may decide payment partly in cash and partly in bonds or in instalments, but minimum 50% of the cash instantly and in remaining 50% after a stipulated period.

b) Funding of the scheme will be made by the banks themselves either from their own funds or by taking loans from other banks/financial institutions or any other source.

6. Periodicity

The scheme may be kept open up to 31.3.2001

7. Sabbatical

An employee/officer who may not be interested to take voluntary retirement immediately can avail the facility of sabbatical for five years, which can be further extended by another term of five year. After the period of sabbatical is over he may re-join the bank on the same post and at the same stage of pay where he was at the time of taking sabbatical. The period of sabbatical will not be considered for increments or qualifying service for person, leave, etc.

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