The All Kerala Bank Retirees’ Federation (AKBRF) has raised a serious complaint against several private sector banks. They claim these banks are not paying the ex-gratia (a voluntary payment made as a gift rather than a legal duty) promised under the 12th Bipartite Settlement. This agreement was signed to improve pay and benefits for bank staff and retirees across India.

KS Krishna, General Secretary of AKBRF, stated that while the settlement is in place, many private managements are ignoring the plight of their former officers and employees. The banks specifically named for not paying the ex-gratia include Dhanlaxmi Bank (DLB), Kotak Mahindra Bank, Karnataka Bank, Karur Vysya Bank, RBL Bank, South Indian Bank (SIB), and Tamilnad Mercantile Bank. These banks are part of the Joint Note agreement but have reportedly failed to release the funds.

Another major issue raised is the 'pension option for resignees'. Usually, if a banker resigns, they might lose pension benefits compared to those who take voluntary retirement. The new settlement aimed to give these resignees another chance to opt into the pension scheme. However, the AKBRF alleges that none of these private banks have implemented this option yet. This leaves many former bankers without a steady monthly income they expected.

Not all private banks are following this trend. The Federation pointed out that Federal Bank, Jammu & Kashmir Bank, and Nainital Bank have already implemented the ex-gratia payments. This shows that it is possible for private lenders to comply with the Indian Banks’ Association (IBA) clarifications if the management chooses to be proactive.

The delay is significant because the ex-gratia is supposed to be effective from November 1, 2022. According to the AKBRF, nearly 45 months have passed without these veterans receiving their due justice. This affects not only retired officers but also family pensioners (widows or dependents of deceased bankers) who rely on this extra financial support to manage inflation.

For current bank aspirants and junior officers, this news is a reminder of the importance of the Bipartite Settlement (wage revision talks between bank unions and management). It shows that even after a deal is signed at the national level, the actual implementation at the branch or bank level can sometimes face hurdles. The unions play a big role in ensuring that what is promised on paper actually reaches the employee's bank account.

The Federation highlighted the emotional side of the struggle too. They reminded the bank managements that these retirees worked in the era of 'manual ledgers' and 'long hours' before mobile apps existed. They built the customer trust that modern banks now profit from. By not paying the ex-gratia, the AKBRF feels the banks are failing to respect the foundation laid by their senior staff.

Going forward, all eyes will be on the managements of Dhanlaxmi Bank, South Indian Bank, and others to see if they follow the lead of Federal Bank. Retirees are calling for the IBA to intervene and ensure that private sector banks do not skip out on the benefits promised in the 12th Bipartite Settlement. Bankers across India will be watching to see if these veteran staff members finally get their arrears.