The leading bank of India SBI has issued an order to its zonal incharge, to recover the compensation granted to employees of its associate banks for working overtime during the demonetisation period, ie November 10, 2016 to December 30, 2016.
After PM Modi announced demonetisation to curb black money, a long queue was witnessed outside banks all over the country. Due to this bank officials had to work extra time to meet the deadline. However, the state-owned banks had announced compensation for its employees working for three-eight hours overtime through the near-50 day period.
The compensation amounted to Rs 30,000 for officers and Rs 17,000 for other employees.
And now SBI in its official notes said that it would only bear the compensation of its employees only and not and not those who came under its payroll after the merger of five associate banks – State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore – in 2017.
“The claim related to the period prior to the merger of e-Abs [erstwhile Associate Banks] should have been dealt by e-Abs at the material time and we have no record of any commitment to pay the same,” the communication read, as reported by The Hindu Business Line.
The order of SBI will have an effect on 70,000 bank employees, reports India Today.