All India Regional Rural Bank Employees Association

Kaikhali, Kolkata – 52

Ref. No. – 707                                                                                                                                     Date:- 21.02.2013



  H.N. RAO

Organizing Secretary, AIRRBEA


1. Supplementary settlement as also Award of NIT could not form for basis for extending the pension benefit since the same is to be determined by the GOI under section 17, as also EPF& MP Act 1952  and its amended pension scheme 1995.


2. Equation committee &Working Group suggested that employees of RRBs were not entitled to pension benefits being governed by specific & exclusive statutes.


3. Equation of Pension between the employees of Commercial Banks and RRBs is not mentioned in the Award.


4. When the issue was referred to NIT, the pension scheme was not available in any bank excepting SBI.


5. Equation committee and Working Group held employees of the RRBs were not entitled to pensionery benefits and award of the NIT did not provide for extending parity of pension.


6. Direction of the Supreme Court in the South Malabar Gramin Bank Case were confined to Parity in pay structure.


7. Most of the RRBs were recapitalized thrice& yet some RRBs continue to have negative networth. Cost of pension will be 7000 crores & RRBs are not in a position to bear such large financial burden, & it would result in winding up of several such banks.


8. Computer settlement was singned when there was need to motivate employees toward computerization, now computers knowledge is pre condition for employment hence NABARD letter dated 30.01.2003. is valid.


9. Supplementary settlement was arrived in 1993, whereas writ petition was filed in 2005. On the ground of delay WP could have not been considered.


10. In Sponsor banks management contribution to P F is without any ceiling, In case of RRBs ceiling is there, so there will be dissimilarity  in retirement benefits.


11. RRB employees are governed by EPF&MP Act 1952and the pension scheme 1995 and hence pension scheme of commercial banks not applicable to them.


Above is the extract of grounds submitted in 6 pages in the SLP which contains more than 16000 pages along with annexures.




Note by AIRRBE

Dilip Kumar Mukherjee,

Secretary General, AIRRBEA


All the above rotten and rubbish arguments placed by GOI in the S.L.P. before Supreme Court are very old in nature. All such clauses raised by GOI have duly and successfully been contested in the NIT, Courts and discussions at Hon’ble Prime Minister, Hon’ble Finance Minister and Finance Ministry levels for years together by AIRRBEA.  So there is no question of panic at any level. GOI was finally convinced with the arguments/facts/evidence/documents placed by AIRRBEA right from A. Ramanathan,  the then Finance Secretary to Shri D.K. Mittal,   the then Banking Secretary, GOI in the year 2012.Then only GOI, being fully convinced, prepared the draft scheme and got it finally approved by the Hon’ble  Finance Minister, GOI on 25th June, 2012.


Main objection in S.L.P. is “capacity to pay”. This objection was raised by GOI before NIT (1987-90) and Hon’ble Supreme Court (1999-2001) and (2002). Both NIT and Hon’ble Supreme Court have ruled out their objection and reaffirmed that “capacity to pay” is not “relevant” in extending “parity of pay structure” to the RRB staff. In fact when NIT was going on, 146 RRBs out of 196 RRBs were in loss and when the RRB system was in loss but NIT did not accept the plea for “capacity to pay”.


Bogusa rgumentsplaced by GOI quoting the logic that the RRBs are within the purview of EPF Act, 1952 has long back been ruled out in the letter from Hon’ble Labour Minister, GOI to Secretary, Department of Banking, GOI and specific Govt. order from Ministry of Labour, GOI to Ministry of Finance, GOI at the continuous persuasion of AIRRBEA. 


Moreover, Govt. of India while placing the proposal for parity of pension before the Finance Minister, GOI finally on 25th June, 2012 was fully satisfied against all such false and unlawful augments and it is none else but Ministry of Finance itself placed the proposal and draft scheme to F.M. for approval. This is on record.


The same “Govt. of India vide two orders No. F. No. 8/20/2012 –RRB GOI, MOF, DFS dt. NIT and D.O. letter No. 8/20/2010-RRB dt. 26th September, 2012 addressed to NABARD has decided to allow RRBs to introduce pension Scheme on the lines of nationalized  banks in lieu of contributory provident  Fund, subject to the condition that  RRB  is profit making and advised NABARD  to constitute a working Group for  preparation of  Model Pension Scheme and Pension Regulation for RRBs”.


Both, Legal Cell, NABRAD and the Pension scheme committee constituted by NABARD have officially rejected the proposal of GOI to link “capacity to pay” with the pension scheme for RRB staff.

All the above records are with us collected through RTI method.


Recorded history of legal struggle by AIRRBEA will reveal the fact that AIRRBEA had moved Hon’ble Supreme Court four times since inception, first in the years 1983-1987, second in the years 1992-95, third in 1999-2001, and fourth in 2002 on the issue of “Parity” and on every occasion, AIRRBEA has come out successful in snatching away the rights of RRB staff from the unwilling hands of GOI. AIRRBEA also contested in NIT (1987-1990). These are on records of adding series of golden feathers on the cap of AIRRBEA.


AIRRBEA had always engaged one of the top senior most Advocates with highest reputation and fee in the Supreme Court from the year 1983to the year 2002. Similar is the history of AIRRBEA in the legal fight directly by AIIRRBEA against Mahalik committee and on pension issue in the Karnataka High Court and by the units/ State Federation of AIRRBEA in the High Courts of Kerala and Karnataka. AIRRBEA has never been defeated in the history of legal fight against GOI.






AIRRBEA has already convened the meeting of  its Legal Subcommittee with available members of  Core Committee at Bangalore  on 24th Feb, 2013 to take  a  comprehensive view on our immediate  legal stand in the Supreme  Court and in Karnataka High Court.


AIRRBEA  gives cent  percent guarantee to its members and to the entire RRB staff that AIRRBEA  will fight  with firm conviction in the Supreme Court by engaging Senior most Advocate  at any cost and will again  defeat the anti-employee  and  unlawful  pleadings of GOI, as  defeated in the past.


We fully assure all the RRB staff that the victory is ours and we firmly believe that in the final hearing of this case likely to be in the month of May, 2013, Supreme Court judgment will go in our favour in the same line as happened in the past.                                                                                                                                                                                       


 Dilip Kumar Mukherjee

 Secretary General, AIRRBEA




  • Narayana Rao Kamavarapu

    Pray the GOD for not to give bad thoughts to Govt about pension scheme.

  • Rayasam Visweswara Sarma

    We are sure that the AIRRBEA leadership will always come with flying colors and sure that the RRB staff including the retirees see the light at the end of the tunnel early. this is only a time seeking play by GOI. Let us pray GOD to give health and strength to Dada ji to recoup his health shortly.

  • Rayasam Visweswara Sarma

    Thanks to AIRRBEA for the details and for clarifications on each and every point. A informative circular. Thanks to HGBOA for thier servces.