By : S,Ramachandran
Indian Banks’ Association ( IBA ), is a voluntary association of banks management in the country consisting of 201 members comprising of Public Sector Banks, Private Sector Banks, Foreign Banks having offices in India and Urban Co-operative banks. IBA is not a legal entity, as it is registered neither under Trade Union Act, 1926 nor under Registration of Societies Act, 1860.and further it is not a professional nor statutory body.
In spite of the above it has been collecting huge monies from its member banks as membership fees, expenses, donations etc, in crores of rupees and spending the collected monies without under any provisions of the law. It is not a statutory body and is not under any control of law and is coming under any of provisions of law. And also not defined as employer under Industrial Dispute ACT 1947.Recently, this unregistered body IBA has issued a circularNoHR&IR/76/H7/E9/755 dated 11.05.2015 on the matter of Encashment of Leave on Compulsory Retirement. It says that some of the affected officers have got relief from the courts and Government of India, Department of Personnel & Training vide O M No. 14028/1/2004-Estt(L) dated 13.01.2006 had also decided that in such cases where the Government servants are compulsorily retired as a measure of punishment and in whose case, if a cut in pension (including gratuity) has been ordered, the benefit of encashment of earned leave at the time of such retirement shall be allowed.
•This matter has been taken up by IBA in its HR committee meeting held on 06.04.2015 and decided to allow encashment leave from 30.04.2015, as the managing committee of IBA decided to allow such encashment.
•IBA is not statutory body, its HR committee or Managing Committee have no force of law, as they are not the committees of statutory body.They cannot amend the Regulation Officer Employees( Discipline and Appeal ) regulations 1976/1982 of PSU banks. Further the effective date can be that of 13.01.2006 of DOPT and not that of managing committees meeting date. IBA has opened its eyes after 9 years, it does not mean if IBA does not take action on this, the position of law change.
