GOVT. ACCEPTS Khandelwal Committee RECOMMENDATIONS!!

Bank employees!! Be ready to face sweeping, upside down changes( or attacks?) in Banking Industry!!

Yes!! Govt. of India  has accepted 56 recommendations out of 105 of  Kandelwal Committee and sent letters to all Public Sector Banks for early implementation.

Here is the details of the letter.

F. No. 9/18/2009-IR

Government of India

Ministry of Finance

Department of Financial Services

Jeevan Deep Building, Sansasd Marg

New Delhi, the 21^st October 2011

To

The CEOs of all PSBs

Sub: Recommendations of the Khandelwal Committee – reg.

Sir,

          I am directed to state that a committee was set up on 22^nd October, 2009 to conduct a study of the HR issues of the Public Sector Banks and making appropriate recommendations, thereon under the Chairmanship of Dr.A.K.Khandelwal, former Chairman & Managing Director of Bank of Baroda with Shri. T.V.Rao, Professor, IIM, Ahemedabad, Dr.Deepak Phatak, Professor, IIT, Mumbai and  Shri. M.V.Nair, the then Chairman, Indian Banks Association as members. The committee submitted its recommendations (grouped into 13 chapters and 105 recommendations) to the government which has since been examined.

2.       Approval of the Government is hereby conveyed on the following recommendations of the Khandelwal Committee. A copy of the Khandelwal committee is enclosed for further reference. It is requested that an HR plan for each bank incorporation these recommendations be prepared and got approved by the Board of Directors latest by 31^st December 2011, a copy of the approved HR plan should also be forwarded to this Department for record and review.

S.No.	Recommendation(s) of the Khandelwal Committee		Decision of the Government
Manpower and Recruitment Planning
1.	MPP exercise to be carried out by the PSBs to be a rigorous exercise and to factor all possible contingencies in HR area – both quantitative and qualitative considering the impact of technology, staff cost and expansion programmes, etc. Each bank’s MPP to have both short term and long term projections.		Accepted
2.	Each PSB to carry out detailed and structured manpower planning exercise every year for a time spectrum of 5 years linking it with strategic and business plans. banks to take steps to institutionalize manpower planning with the help of outside expert advice, if required and subject to review every year by the proposed steering Committee of the Board on HR.		Accepted

BANK PENSION AND CENTRAL GOVT. PENSION: A COMPARITION

Comparisons of Pension Benefits - Govt Employees Vs Bank Employees

COMPILED BY  S.K.Mishra – Bhopal. Dated 08-11-2011

Head.	For GOI Employees	For Bank Employees
Pension	Full = 50% of Basic Pay on Completion of 20 years of service.	Full on completion of 33 years of service. Proportionate after 20 years service

REVISION OF PENSION in LIC AS PER NEW WAGE REVISIONS!!

DREAM COMES TRUE FOR RETIRED LIC EMPLOYEES!!

WHEN IT WILL COME FOR BANK EMPLOYEES?????

Here is the news about revision of pension for retired LIC employees.

Rajasthan High Court today (i.e. 02/11/11)granted four weeks time to LIC to comply with its earlier order directing the company to implement a November 2001 board decision to revise pension and dearness allowance of its retired employees.
Hearing a contempt petition, the single bench of Justice Mahesh Chandra Sharma directed the LIC to revise the pension and DA payable to its retired employees corresponding to the successive revisions of pay scales that took place in 1986, 1993, 1997, 2002 and 2007.

Khandelwal Committee recommendations!

 REPOSTED:

Instead of the current industry-level arrangement, the entire wage decision should come to the bank level, the Committee on HR issues in PSBs, headed by the former Bank of Baroda Chairman and Managing Director, Dr Anil Khandelwal, has suggested.

The suggestion to do away with industry-level wage settlements is in line with the overall approach of the committee that there cannot be one-size-fits-all solutions, whether it be for remuneration, incentives, welfare or according navratna status, Dr Khandelwal told reporters here.

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MAJOR RECOMMENDATIONS

 §            To be an annual well-structured and rigorous exercise for 5 year period,                                    factoring gaps in skills and competencies.

 §               Banks to monitor staff costs and endeavor to achieve staff cost ratio of 50% in the next 5 years;

 §                      PSBs to outsource non-core activities;

 §                   To implement Business Process Re-engineering(BPR) and Change Management.

 §                   PSBs to reach Officer-clerk ratio of 1: 0.5 for metro and         urban branches & 1: 0.75 for rural and semi-urban branches in next 3 years.

 §                    Recruitment of direct officers to be 50% of total officer         vacancies;

 §                     Entry qualification for clerical recruitment to be graduation;                for sub-staff, X standard pass.  Standard of recruitment of new clerical and officer staff to be raised in tune with the new requirements.

 §                   Fresh recruitment of clerks to be restricted to rural and semi-         urban branches; rural service to be made mandatory for new clerks.

 §                       Banks to incentivize mobility of clerical staff to rural areas;