Justice delayed is justice denied.............

"I find from the June issue of "HITGUJ", which I happened to see a few minutes ago, that in the meeting the United Forum of Employees had with Shri Rajiv Takru, Secretary, Financial Services Sector, MOF, on the 10th of June that the Secretary had said that a comparative study of all aspects of the terms and conditions of service up to retirement (and the benefits) in GOI, SBI,RBI would have to be made before the Pension Updation issue could be decided. I am at a loss to understand as to how the benefits of employees while in service are relevant in relation to pension and its updation for the retired employees. In any case, I am also at a loss to understand as to why such a chart is to be prepared by the United Forum. The relevance of preparation of such a chart has to be examined by the RBI top management. If it does not find it relevant at all, it has to say so to the honourable GOI Secretary. In the unlikely event of the top management of the RBI finding some merit, on some aspects, in the view of the Secretary, it has to undertake the task and forward it to the GOI with its views. Again, for giving another option for pension, the determination of the actuarial liability is the function of the RBI management. If I remember well, RBI auditors had been making a demand ever since the Pension Scheme was introduced in the Bank that the actuarial liability of pension payments would have to be determined by the Bank once in two years and the Bank would have to transfer funds to the 'Pension Fund' to meet any shortfall in the corpus vis-a-vis the actuarial liability. The auditors were looking into this aspect while auditing the accounts of the Bank and the amount indicated by them is also being transferred by the Bank."

I have seen several mails, in the last couple of years, from some of our active retired employees who have taken up the issue of Pension Updation with the Bank (also with the Government) detailing irrefutable arguments as why the demand for Pension updation for RBI retired employees, on the lines of Government employees in accordance with the recommendations of the Pay Commission, is fair and reasonable. Unfortunately, the demand is yet to be conceded. From one of the issues of 'Hitguj', I came to know that it was the much admired Shri Vinod Rai (of course for the manner in which he had performed his role as CAG) who had first turned down the proposal and even saw it proper to ask the RBI to withdraw the instructions issued for Updation and  recover the excess amount paid to such of those employees who had retired and had got the benefit.The final disposal of the case in the Mumbai High Court seems to have gone into a limbo!! Even then, we should congratulate some of our retired colleagues who had petitioned the Mumbai High Court and secured a stay of the operation of the Bank's circular issued as desired by the Ministry of Finance. This is an important first step for securing the right of updation of pension for RBI employees. Unfortunately,there has been no progress towards the final resolution of the issue.

Shri Vinod Rai must have found merit for supporting the stand of his Ministry and for taking the decision which he did. In the Affidavit filed by the Ministry in the Mumbai High Court Case, the arguments of the Ministry would have been given for not agreeing to the pension updation for RBI employees. Strangely, in none of the mails I had received, I could find arguments of the Ministry against the proposal. The argument that if pension updation is given to RBI employees, it had to be extended to the Banking Industry and LIC etc is so weak that it is to be dismissed with the contempt it deserves. The argument that the Ministry is prejudiced against the employees of the RBI and hence it is not agreeing to the proposal cannot be considered responsible. There should be some valid arguments from the side of the GOI and some conditions before the proposal is cleared. I would be happy to be enlightened on this matter from any member of the large, knowledgeable community of Mangesh Tarambale's Newsletter (VITALINFO). Thanks in anticipation.

P.S Incidentally, in this matter as well as in many other issues (e.g. allowing the Ministry to issue all sorts of instructions impinging on the supervisory and regulatory role of the RBI over banks), we are able to see how autonomous the Central Bank is ! In recent periods, the attack on the independence and autonomy of the RBI has become more pronounced.

- A.Chandramouliswaran, former Executive Director