This will help the bank to optimise costs and human resources.
The State Bank of India (SBI) is coming up with a voluntary retirement scheme (VRS) to reduce the number of employees. The ones who have lost three or more consecutive promotions will be in focus of the 'Second Innings Tap-Voluntary Retirement Scheme-2020 (SITVRS-2020). According to the bank's policy, a retirement scheme has been formulated to give a respectable send-off to such employees so that can choose to make their new career elsewhere. This will help the optimisation of costs and human resources.
Who does the scheme apply to?
The scheme can be availed of by employees who have completed 55 years of age and 25 years in the job. The scheme is also open for those who have health issues or problem with movement. Employees of other banks merged with the State Bank will also be able to participate in the scheme. However, the scheme will not be applicable for employees such as CA, CFA, forex dealer and those dealing with risk management.
Contract staffers are also not eligible for the scheme. Suspended employees or those against whom departmental action is going on would also not be able to partake of the scheme. Employees against whom central investigative agencies like CBI and ED are investigating will also be out of the scheme. However, employees who avail of the scheme can reconnect with the bank after a gap of two years.
What are the benefits?
The employees who avail of the scheme will get a salary equal to 50 per cent of the remaining job term. But it will not exceed the 18-month amount of the existing salary. Also, the amount of income tax would be deducted as per the rules on salaries.
According to the rules, gratuity and provident fund will also be given. At the same time, pension, leave encashment will also be facilitated.
Housing loans, car loans, education loans at concessional rates will also continue under the bank's policy. However, if an employee has taken a loan, he will have to be repay it first. Travel and baggage allowance will also be provided.
If an employee wants to take the furniture or other things on behalf of the bank, he will have to pay the money under the rules of the bank. However, there is also a stringent condition that the person who take the voluntary retirement scheme will not challenge the amount being given in the settlement. The successor of the person will not be able to legally challenge any case related to the bank's scheme.
When can the employees opt for the scheme?
The scheme will open on December 1 every year till the month of February. Those who want to withdraw the application can do so within 15 days.
How much will the bank save?
According to the bank's estimates, as many as 11,565 officers and 18,625 junior employees will get a chance to partake of the scheme. According to the bank, if all the estimated employees avail it, then the lender would save at least Rs 2,171 crore. If 30 per cent of the staff avail of the scheme, there would be a saving of about Rs 1,663 crore. The estimates were calculated on the basis of July's salary.
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