A unique relief program called "FBOIOA Sahayya" has been launched by the Federation of Bank of India Officers' Associations (FBOIOA) to provide interest-free financial aid to officers who have had their salaries drastically reduced as a result of perquisite tax deductions. The program's goal is to give officers who had significant tax deductions in February 2025 and whose net salary was less than Rs.20,000 instant financial support.
Public sector banks have recently started taxing the perks that officers are provided. Benefits offered to bank employees include low-interest loans. For instance, the average person's car loan interest rate is 9%. Bank employees receive a 5.5% loan rate.
Because bank employees pay low interest rates, they can save money on loans, which is considered advantageous. Bank workers are now required to pay taxes on this perquisite. This indicates that tax will be paid on the amount that differs because of the different interest rates. If the general public pays Rs. 1000 in interest on a car loan while bank employees pay Rs. 700, the bank employees must pay tax on the Rs. 300 difference.
Financial distress resulted from the Bank of India's officers receiving drastically reduced or no pay in February 2025. Nearly 1,400 officers reportedly have net salary credits of less than Rs. 20,000 as a result of high tax deductions applied by the bank.
In response, the FBOIOA has been negotiating with bank management to find a long-term solution. However, to offer immediate relief, the federation has launched this interest-free advance scheme for affected officers.
Who is eligible for the scheme?
To apply for financial assistance under the Sahayya scheme, an officer must meet the following criteria:
* Must be an active FBOIOA member.
* Net salary for February 2025 should be below Rs.20,000, primarily due to perquisite tax deductions.
* Application process and required documents
* Eligible officers need to submit an application form (Annexure-1) through their Unit General Secretary along with the following documents:
1. A copy of the February 2025 salary slip showing a net salary below Rs.20,000.
2. Five post-dated cheques (PDCs) of Rs.10,000 each, drawn in favor of the respective unit.
Deadline for application submission: March 7, 2025.
Disbursement and repayment of financial assistance
Under the FBOIOA Sahayya scheme, officers will receive ₹50,000 as an interest-free financial advance, which will be disbursed in two equal installments:
Rs.25,000 as the first installment upon approval of the application.
Rs.25,000 as the second installment in the following month.
The repayment will begin from May 2025, with officers required to repay the total amount in five equal monthly installments of Rs.10,000 each.
Federation’s commitment to officer welfare
The FBOIOA has assured officers that discussions with bank management are ongoing to prevent such financial distress in the future. While the Sahayya scheme serves as a short-term relief measure, the federation remains committed to finding a long-term solution for perquisite tax deductions affecting officers’ salaries.
Officers facing financial difficulties are encouraged to apply for the scheme before March 7, 2025, to avail of this support.
