Public sector banks News
The Indian Banks’ Association (IBA) had urged the government to increase the family pension of deceased employees. The Central government has also increased the contribution limit for PSB employees under the National Pension Scheme (NPS). Employees of the public sector banks can now invest up to 14% of their salary, up from the previous limit of 10%.
The Budget allocated Rs 20,000 crore towards recapitalisation of PSBs to help them consolidate their financial capacity. Moreover, PSBs have proactively built buffers during the financial year 2020-21 (FY21) to improve their resilience in the face of the shock from the pandemic. The problem has been accentuated with the Reserve Bank of India now writing to the bank to meet their obligation towards interest on interest for all borrowers where exposure is over Rs 2 crore as well.
Services such as deposits and withdrawal at branches, cheque clearance and loan approvals would be affected due to the strike. UFBU, an umbrella body of nine unions, in a statement claimed that about 10 lakh bank employees and officers of the banks will participate in the strike. Banks have also informed that they are taking necessary steps for the smooth functioning of bank branches and offices.