FBOIOA launches ‘Sahayya’ scheme to provide interest-free financial assistance to officers

 

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.

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DA increased for Bank Employees and Pensioners from Feb-2025, Complete Chart

On the basis of CPI data announced by the Govt for the months of Oct'24 to Dec'254 DA payable for the period Feb'25 to Apr'25 is 21.20% as per 12th BPS.

 

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This PSU bank introduced objective performance appraisal system for Employees

 

Over the next three years, Indian Bank, a well-known public sector lender, intends to open 300 additional branches to increase the size of its branch network. The bank will be present in every district headquarters nationwide thanks to this development. 

To improve its competitiveness and strengthen its leadership pipeline, the bank is also starting a leadership development program that will train some 400 staff. The strategy for branch expansion Indian Bank's Managing Director and CEO, Binod Kumar, stated that the bank's top goal is branch expansion. 

We have opened 70 to 80 branches during the past two to three years. With the goal of opening 300 new branches during the next three years, we now intend to greatly grow our network," Kumar stated.

The bank intends to apply a cluster-based model, increase its presence in current sites, and concentrate on developing towns. The plan calls for opening branches in agribusiness clusters, MSME (Micro, Small, and Medium Enterprises), and expanding urban regions. The bank's long-term goal is to open a branch in each of the major district headquarters. 

Pay Attention to Employee Satisfaction The bank's growth plan heavily relies on employee satisfaction. Kumar underlined the significance of enhancing productivity through employee-centric initiatives and keeping top personnel. 

To better identify and reward strong performers, Indian Bank has implemented a more objective performance appraisal system. Kumar clarified, "This will help us distinguish between high performers and non-performers, thus motivating top talent."

Indian Bank has selected 400 staff members to participate in a year-long training program as part of its endeavors to develop a strong leadership team. Through project-based learning, classroom instruction, on-site training, and private coaching, the curriculum will concentrate on fostering managerial and strategic skills. 

In addition to bolstering efforts in compliance, IT, HR, and cybersecurity, the objective is to develop a strong pool of leaders capable of propelling corporate expansion. 

"Our leadership development programs will guarantee qualitative improvements in a number of operational areas in addition to boosting business growth," Kumar stated. 

Enhancing Resource Acquisition and CASA Indian Bank is concentrating on improving its Current Account Savings Account (CASA) percentage in addition to growing its branch network and leadership team.

The bank aims to increase its CASA ratio from 40% to 42%, despite the challenges in deposit mobilisation. To achieve this, the bank has expanded its Resource Acquisition Centers (RACs), opening 100 last year, with plans to open 25 more. 

The bank has also set up Resource and Government Relationship (R&G) Centers to improve relationships with government departments and offer banking solutions beyond account openings.

“CASA growth depends on customer satisfaction, convenience, and efficiency,” Kumar concluded, highlighting the importance of meeting customer expectations to drive deposit growth.

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High Court Orders BOI to Pay Dues to Employee Following Compulsory Retirement

 

An employee who is given mandatory retirement in contravention of the law and then reinstated will be eligible to receive full pay and other benefits for the time they were out of work, according to a division bench of the Madhya Pradesh High Court. 

This verdict followed the Bank of India's (BOI) appeal of a single-judge decision that mandated the bank reimburse an employee for the time he was unemployed owing to mandatory retirement. 

Narmada Prasad Chaudhary, who began working for the Bank of India in July 1974, is at issue in this case. He was prematurely retired from his job by the bank in January 2002. In the High Court, Chaudhary contested the ruling and prevailed.

The Supreme Court upheld the High Court's verdict after the bank appealed the decision there. Chaudhary was consequently given his position back in September 2009.

 However, the bank failed to factor in the more than seven years he was unemployed as a result of the mandatory retirement when determining his post-retirement compensation. 

The computation of his pay and retirement benefits was impacted by this omission.

Chaudhary then filed an appeal with the High Court once more. A one-judge panel decided in his favor in this matter, directing the bank to reimburse him for his lost income, perks from his promotion, and other obligations during his leave of absence. 

This verdict was contested by the bank management, and a division bench heard the case. Chief Justice SK Kait and Justice Vivek Jain led the division bench, which affirmed the ruling of the lower court. 

During Chaudhary's forced retirement, they mandated that the Bank of India give him his full salary, benefits from his promotion, and other entitlements. Additionally, the bank was ordered by the court to pay him 8% interest on the amount owing.

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Bank Staff Benefits, Allowances and benefits provided to PSB Employees

 

Public sector banks in India offers a good number of benefits to its employees. You can check various allowances, benefits provided to employees as listed below.

Medical Aid

50% of Basic Pay of Previous Year’s December Month. Officers recruited during the year shall be allowed 50% of basic pay (pro-rata) as on date of joining the Bank.

Health Checkup

Facility for Officers (Self & Spouse with age of 35 years & Above; Once in a Calendar Year)

Upto Scale III	Rs. 3500 per person
Scale IV & V	Rs. 4500 per person
Scale VI & VII	Rs. 6000 per person
Scale VIII	Rs. 8000 per person

 

Stationery: Purchase of Stationery Items like Fountain/ Ball Pen refills etc.- Rs. 350 per calendar year

Newspaper Facility (to be claimed Quarterly)

Scale I	Rs. 200 (monthly)
Scale II & III	Rs. 300 (monthly)
Scale IV & V	Rs. 450 (monthly)
Scale VI and above	Rs. 600 (monthly)

 

Entertainment Expenses (Annual Limit per Financial Year)

Scale I	Rs.8600 (upto 7 yrs service)/ Rs.10800 (>7 yrs service)
Scale II	Rs. 11500
Scale III	Rs. 12200
Scale IV & V	Rs. 12900
Scale VI	Rs. 19500
Scale VII	Rs. 37500
Scale VIII	Rs. 50000

 

Cleansing Material Reimbursement(to be claimed Quarterly)

Petrolage in liters	Maintenance in Rs.	Reimbursement for Electric Vehicle
Scale I (other than BH)	40	50	3000
Scale I (BH)/ Dy Mgr	60	150	4500
Scale II	60	150	4500
Scale III	95	150	7000
Scale IV	120 (non- metro)/ 135 (metro)	135/150	9000(non-metro)/ 10000 (metro)
Scale V	140 (non- metro)/ 160 (metro)	–	–
Scale VI	160 (non- metro)/ 180 (metro)	–	–
Scale VII & VIII	200 (non- metro)/ 220 (metro)	–	–

 

Scholarship scheme: to provide financial assistance to one talented child of the employees only for one talented child per family during the service (Paid Once a Year i.e. on submission of claim by 31st December of the year of commencement of academic session).

Cadre	For Daughter	For Son
Officer	Rs. 20000	Rs. 8000

 

Festival Advance (Once in Calendar Year- One Month Gross Salary with following maximum limits)

Scale I	Rs. 35000
Scale II	Rs. 50000
Scale III	Rs. 60000
Scale IV & V	Rs. 85000
Scale VI & VII	Rs. 100000
Scale VIII	Rs. 125000

 

 

Staff Clean Overdraft/ Demand Loan Facility

Cadre/ Length of Service	>6 months upto 3 yrs	=>3 yrs upto 12 yrs	=> 12 yrs
Upto Scale IV	Rs. 5 lakhs	Rs. 10 lakhs	Rs. 15 lakhs
Scale V and above	Rs. 8 lakhs	Rs. 15 lakhs	Rs. 15 lakhs

 

Housing Loan Scheme (HRDD 886/2023 & 915/2024) Principal: Interest = 3:1

Tenure: Upto 75 years of age or 360 monthly installments whichever is earlier ROI – Upto Rs.40 lakh – 5.50% p.a. Simple/ Above Rs.40 lakh- 6.00% p.a. Simple

Cadre	Housing Loan Limit	Loan for Repair/ Renovation/ Furnishing
Upto Scale III	Rs. 120 lakhs	Rs. 30 lakhs
Scale IV & V	Rs. 150 lakhs	Rs. 30 lakhs
Scale VI & VII	Rs. 160 lakhs	Rs. 30 lakhs
Scale VIII	Rs. 180 lakhs	Rs. 30 lakhs

 

Conveyance Loan
ROI – Car Loan- 5.50% p.a. Simple/ Two Wheeler- 5.50% p.a. Simple

	Principal: Interest	Tenure
Car Loan	130 months: 50 months	Upto 70 years of age or 180 monthly installments whichever is earlier
Two Wheeler	69 months: 15 months	Upto 70 years of age or 84 monthly installments whichever is earlier

 

	Non Electric		Electric
Cadre	2-Wheeler	Car	2-Wheeler	Car
Officers	Rs. 3.50 lakh	Rs. 18.00 lakh	Rs. 4.00 lakh	Rs.20.00 Lakh

 

Purchase of Briefcase of Officers (Once in 3 years)

Scale I	Rs. 2500
Scale II & III	Rs. 3500
Scale IV & V	Rs. 7000
Scale VI & VII	Rs.25000
Scale VIII	Rs.30000

 

 

Compensation to Officers for working on Sundays/ Holidays

Other than CTS/ ECS/ RTGS/ SWIFT/ RBI/ GOVT. directions	Work < 4 hour- ½ day DiemWork > 4 hour- 1 day Diem OR 1 Day compensatory leave
On CTS/ ECS/ RTGS/ SWIFT/ RBI/ GOVT. directions	Rs. 2000 (Including Scale IV)

 

 

Group Personal Accident (GPA) Insurance Policy for Staff at Bank’s cost

Cadre	Sum Insured in (Rs.)
Scale I, II & III	Rs. 2500000
Scale IV to V	Rs. 5000000
Scale VI to VIII	Rs. 7500000

 

 

Leased Residential Accommodation

	Delhi/ Gurgaon & Mumbai	Major A Class	Area I/ State Capital (Including Faridabad, Ghaziabad)	Area II (Including Noida)	Area III
Scale I	30000	22500	17000	11000	8500
Dy. Manager	30500	23000	17500	11500	9000
Scale II	32000	23500	18000	12000	10000
Scale III	33500	26000	20500	13000	11500
Scale IV	37000	29500	23500	15000	15000
Scale V	45000	33000	26000	18000	18000
Scale VI	74000	45500	34000	22000	22000
Scale VII	85500	57500	40000	30000	30000
Scale VIII	87500	60000	50000	40000	40000

·         Major ‘A’ Class cities – Kolkata, Chennai, Hyderabad, Ahmadabad and Bangalore, Pune, Surat.

·         Area I – Areas having population of over 12 lakh plus State Capitals.

·         Area II – All cities other than those included in Area I which have a population of 1 lakh and more.

·         Area III – All other places not included in Area I and Area II.

 

Reimbursement of Expenses on Travel (Halting allowance – Diem)

	Metro (Including Delhi/ Gurgaon)	Major A Class	Area I (Including Faridabad, Ghaziabad)	Other (Including Noida)
Upto Scale III	2925	2475	2150	1800
Scale IV & V	3375	2925	2475	2150
Scale VI and above	4050	2925	2475	2150

 

Reimbursement of Expenses on Travel(Lodging & Boarding Facility – Hotel)

	Metro (Including Delhi/ Gurgaon)	Major A Class	Area I/ State Capital (Including Faridabad, Ghaziabad)	Other (Including Noida)
Scale I	2600	2600	2500	2000
Scale II & III	3200	3000	2800	2300
Scale IV & V	5200	4800	3000	2800
Scale VI & VII	10000	7800	4000	3500
Scale VIII	10000	8000	4200	3800

·         Metro: – Mumbai, Kolkata, Delhi, Chennai & Bangalore

·         Major ‘A’ class cities: – Ahmedabad, Hyderabad, Pune & Surat.

·         Area –I Centers:- Nagpur, Kanpur, Jaipur, Lucknow, Vishakapatnam, Patna, Vadodara, Kochi, Indore, Bhopal, Ludhiana, Coimbatore, Madurai, Agra, Varanasi, Srinagar, Vijaywada, Rajkot, Faridabad, Jamshedpur, Kozhikode, Trissur, Mallapuram, Tiruvananthpuram, Kannur, Jabalpur, Nashik, Meerut, Allahabad, Ghaziabad and Asansol

 

Silver Jubilee Award to Serving Employee- (on completion of 25 years of service in the bank): Rs. 10,000/- (inclusive of GST); function expenses @ Rs. 60 per employee of branch.

Residential SFF

Scale I/ Dy. Manager	175000
Scale II	200000
Scale III	225000
Scale IV	230000 + 1 AC (upto 35000)
Scale V	260000 + 1 AC (upto 35000)
Scale VI	345000 + 1 AC (upto 35000)
Scale VII	480000 + 2 ACs (each upto 35000)
Scale VIII	600000 + 2 ACs (each upto 35000)

 

Reimbursement of Expenses towards Transportation of Personal Effects on Transfer; Min. 300 km; Two Times for Hilly area (HRMD 694/2023)

Upto 1000 km	Rs. 5.90 per tonne per km
Beyond 1000 km	Rs. 4.25 per tonne per km

 

Facility for Telephone (Landline)/ Mobile Phone (Per Month/ Excluding GST)

	Mobile Handset	Incumbent	Other	On Self Declaration
Scale I	–	1200	700 *	400
Scale II	–	1300	800 *	400
Scale III	–	1500	1000 *	400
Scale IV	5000 (BH only)	2500	2000
Scale V	15000	3500	3000
Scale VI	20000	6000	5000
Scale VII	40000	Unlimited	Unlimited
Scale VIII	50000	Unlimited	Unlimited

* Approval from CH/ DZM/ Divisional Head required

Compensation on Transfer (Lumpsum) (towards packaging, local transportation, insuring the baggage)

Scale I, II & III	Rs. 40,000
Above Scale IV	Rs. 50,000

 

Reimbursement of travelling expenses for travel on duty/ transfer by own vehicle

Type of vehicle	Rate of reimbursement per km. (Rs.)
Four wheeler – Engine capacity of 1000 cc or more	11.00
Four wheeler – Engine capacity of less than 1000 cc	9.00
Motorcycle and scooter	6.00

 

Financial Aid to the families of the employee who die while in service of the bank

Cadre	Financial Aid (Rs.)
Officer	Rs. 300000

 

Compensation to Bank Employees who are killed in Bank Robberies, Terrorist Incidents including Left Wing Extremism

Cadre	Amount (Rs.)
Officer	Rs. 20 lakhs

 

Various Other Benefits:

·         Learning Allowance: Rs.850/- pm + DA

·         Location Allowance (Non CCA Centre): Rs.1200/- pm

·         Special Allowance: 26.50% (Scale I), 28.30% (Scale II & III), 30.50% (Scale IV & V) and 31.50% (Scale VI -VIII)

·         Recovery: a) House Rent @ 0.35%, b) SFF @ 0.075%

·         Annual Encashment of PL: 5 days (7 days for officers above 55 years)

·         NPS Employer Contribution increased to 14% (out of 14%, 4% is taxable in hands of Employee)

·         Scheme for providing financial assistance to the employees having children with special needs: Rs. 30000/- p.a. (HRMD 744/2024)

·         Canteen Subsidy: Rs. 100/- per employee per month – Payment to be made to Canteen Vendor

·         Memento to the employees on Retirement and on Voluntary Retirement: Rs. 15000/- (Inclusive of GST)/ Rs. 100 per employee for organizing function.

·         Providing immediate relief to the family of the employees who die while in service (Financial support for funeral expenses): Rs. 30000/-

·         Closing Allowance: Rs.1500/- per quarter

·         Mid Academic Year Transfer Allowance: Rs. 2500/- p.m. per child with a maximum up to 2 children

 

* Above defined allowances, benefits are for PNB employees and these might be vary for different banks. Comments here if any changes.

* If you want share data of other banks please share here...