The Committee

Chief Patron: Shri Anil Shastri, Special Invitee, Congress Working Committee (CWC) President: A K Dixit, Vice Presidents: Mithileshwar Jha and Samuel B Johnson, General Secretary: Amlan Dash, Organising Secretary: M V Jaiprakash, Treasurer: P C Suresh Babu, Zonal Secretaries: Deep[ Kushal(North), Gautam Kumar Singh (Central), Hemant S Patil (West), S Rajagopalan (South), Shailendra Kumar (East), Anil Kumar Yadav (North East), Executive Committee Members: D K Mazumder, Dr Pradeep Parate, Sasidharan Nair, Ms Subrata Banerjee, Sudhanshu Nagwekar, Ms Urvashi Garg

Charter or Demand - Part A & B (Revised)


w.e.f. 01 November 2012

Submitted on 31 October 2012


      NABARD was established in the year 1982 by an Act of the Parliament as a Development Finance Institution for providing and regulating credit and other facilities for the promotion and development of agriculture, small scale industries, cottage and village industries, handicrafts and other rural crafts and other economic activities in rural areas with a view to promoting integrated rural development and securing prosperity of rural areas. Thus, NABARD is a unique Apex level institution whose mandate and activities are so varied and complex in nature and so sensitive to the rural masses of the country. Hence, it requires staff of high level of expertise and motivation. The pay structure and service conditions should be such that it will attract talented blood into the organisation and also motivate the existing staff to fully devote to the cause of the institution. It is all the more necessary in the present scenario, when it is widely talked about the need for giving impetus to the agriculture and rural development and NABARD has to play increasingly more focused role in the field.

2        Guiding principles for revision in pay and other service conditions
·         The need for maintaining a highly qualified, expert and motivated officer cadre as mandated in the NABARD Act, 1981.
·         The provisions of Section 50 of the NABARD Act, 1981.
·         The assurance given by the first Chairman of NABARD vide letter dated 18 December 1982, on the basis of which the staff of RBI had opted for NABARD.
·         The provisions of Section 70 of the NABARD Staff Rules, 1982.
·         The principle of equal pay for equal work.
·         Principle of external relativity with other comparable apex institutions in India and abroad.
·         The concept of Minimum Life standard equivalent to the life standard enjoyed by officers of apex institutions worldwide.
·         Inbuilt system of satisfaction on promotion by way of distinctive difference in benefits/ facilities without undue disparity.
·         Agreement after negotiations be documented in the form of Memorandum of Understanding between Management and NBOA and should be followed for all purpose till the next MOU on wage revision is signed between management and NBOA.

3        Effective Date.
      Revised scales and allowances should be made effective from 01 November 2012. The next revision shall take place from 01 November 2015.

4        Right to Submit Supplementary Charter
      NBOA reserves the right to include, amend or alter the demands, as made out in the Charter during the pendency of wage revision and also during the course of negotiations.

Part A- Pay and Allowances
1        Pay
a.       The existing pay scales to be restructured with reference to the merger of DA at the index point as on 31 October 2012 as per All India Consumer Price Index 1960 series with 100% neutralization and the principles outlined in Paragraph 2 above so that the A+ position maintained in the industry is continued.  Considering 100% increase in past five years under two major expenditure heads – Education and Housing – not captured in DA computation, it is proposed for 20% annual increase over each of the five years period.  The objective is the dignified pay at par with the best standards in the industry and befitting the reputation of the organization and the services rendered to the lifeline of the country so as to attract talented employees from the market.
b.      The existing six scales of pay for officers to be integrated in to three scales having regard to various factors.  The span for the integrated scales be mutually arrived at and so structured as one single master running scale so that distortions in the scales can be dispensed with.
c.       The beginning of scale for Grade A should atleast 50%  more than the  maximum scale of the Group B.
2        Increments
a.       The increments at each stage may be restructured with scientific merger of DA with full neutralization duly rectifying the earlier erosion.
b.      The quantum of annual increment in each scale should be 15% of the mid point of the scale in respective scales.
c.       The starting point of each scale should be higher by  four increments than the previous scale.
d.      All types of increments /special pay should be paid from the beginning of the first month of the Calendar year irrespective of the due date.
e.       Increment may be made available each year.
f.       Four yearly stagnation increments in each scale after reaching maximum followed by supervisory allowance on completion of four years from the grant of the fourth stagnation increment.
3        Roll over
      The officers in all grades should be allowed to roll over to the next higher scale on reaching the maximum in the present scale.
4        Fitment
a.       Fitment in the new scale should be stage to stage with one notional increment.
b.      Anomaly in pay may be rectified while fitment is made.
5        Part-time officers
      Pay scales to be finalized simultaneously.
6. Dearness Allowance (DA)
a)      The rising cost of living is affecting the “Take Home Pay” on day-to-day basis. The payment of DA does not reflect the correct composition. There is a need to revise and increase the rate of compensation. 
b)      The existing Dearness Allowance is based on a formula arrived through the merger of index at every revision. It is a mere arithmetical calculation and hence suffers from several inequities.
c)      The inequities should be rectified by rationalizing the existing formula for the purpose of calculation of the Dearness Allowance.  The first and foremost consideration should be to refix the compensation rate for every slab. The current rate of 0.15 per slab of 4 points be re-fixed for the purpose of post merger neutralization instead of working out mere arithmetical equation. To be specific the neutralization which is at present 100% should now be increased to 125%. The conversion factor should be recalculated accordingly.
d)      The inflation figures are now arrived at weekly basis in order to workout the economic growth of the country. The inflation is on a day to day basis and the periodicity of price fluctuation is on day to day basis and in certain instants it is on hourly basis. There has been no instance of the index coming down in the last several years and it has been on the increase.  The inflation should be compensated then and there only. Once, the figures are available for the purpose of calculation of the monthly index – the Dearness Allowance should be worked out and the compensation passed on to the workforce, on a monthly basis.

7         House Rent allowance
a.       HRA be paid @ 30% of the gross salary without any ceiling. The hike in HRA should not be taken while calculating the total pay hike.
b.      The officers’ residing in their own houses should be allowed self leasing facility.
c.       No recovery of rent be made from officers occupying Bank’s accommodation.
d.      Officers not residing in Bank's accommodation and family residing in the own house at some other centre be made eligible for enhanced HRA at 200%.
e.       DDMs/officers posted to PMUs keeping family at any other centre/place in India may be paid enhanced HRA at 200 %.
8.        Grade Allowance:
Grade Allowance should be treated as Basic Pay for all purposes and be revised as under:-

Officer/ Grades
Amount  Per Month
9.      Local allowance
      25% of Basic Pay without any ceiling.     
10.  Family allowances
      20% of Basic Pay without any ceiling.
11.  Educational Allowance (EA)
a.       Education Allowance be paid @ 40 % of Basic Pay without any ceiling.
b.      Enhanced Educational Allowance @ 20% Basic Pay be paid without any ceiling to all officers whose children are studying in schools/ colleges/ professional institutions other than the place of posting.
12.  Special Allowance
a.      The Special Allowance of @ 15 % of Basic Pay pay be paid to all officers without any ceiling.
13.  Personal allowance and Fixed Personal Allowance (PA and FPA)    
      The allowances should be enhanced suitably in direct proportion to increase in the pay scales.
14.  Special Compensatory Allowance
      The allowances should be enhanced suitably in direct proportion to increase in the pay scales and should qualify for DA and superannuation benefits.
15.  Rural Development Apex Bank Allowance
a.       Keeping in view the unique and special type of work being undertaken by officers, a special  allowance viz., Rural Development Apex Bank Allowance @ 30% of Basic Pay without any ceiling.    
b        This allowance be reckoned for the purpose of DA and superannuation benefits. 
16.  Post Allowance
a.       The concept of Post Allowance be introduced and the allowance be 20% of the Basic Pay in case of officers in grades A, B & C and 25% in the case of officers in the grades D and above.
b.      The allowance be reckoned for the purpose of DA and superannuation benefits.
17. Supervisory Allowances
Supervisory Allowance be granted on completion of four years from the grant of fourth Stagnation Increment (SI) which should be reckoned for DA and superannuation benefits.
18. Special Increment
      A Special Increment over and above the normal increment may be granted to all officers on completion of 25 years of service.
17.  Professional Qualifications  
a.       Two increments for JAIIB and four increments for CAIIB be granted.
b.      Two/four advance increments benefit to be given to all officers who acquired the qualification JAIIB/CAIIB before joining the service.
c.       Post scale JAIIB and CAIIB allowance may be granted @ Rs 5000/- and Rs 10,000/- respectively.
II      Ph. D
d.      Two increments may be granted to those who have/acquire Ph.D at the time of joining/ while in service.
e.       The PhD increments may be treated over and above the normal increments and accordingly allow to continue to draw the increments even after reaching the maximum scale.
f.       Post scale Ph D allowance @ Rs.3,000/- per month be given to officers who do their Ph D. 
III   Hindi Examination
g.      Appropriate increments be given for passing special Hindi examinations.
h.      PS passing special Hindi Stenography examinations either passing before or after becoming officer may be eligible for additional increments.
IV. Other Professional qualification
      All officers who acquire professional qualifications (like CA, ICWA, CS, CFA, FRB, CISA) may be awarded two advance increments.
18.  Functional allowance
a.       Concept of functional allowance @ 15% of Pay be introduced
b.      It should be paid to P&SOs, PS/SPS/PPS, Architects, Engineers and such officers who function on project sites and officers who perform duties on odd hours.
c.       Officers holding charge of OICs of Regional Offices / Sub-offices / Head Office Departments/Training Establishments may be paid @ 15% of pay.
d.      DDMs/officers posted to PMUs should be paid a special allowance @ 15% of pay.

19.  Faculty Allowance / Special Allowance to Principals / Vice Principals
a) Faculty Allowance @ 15% of pay without any ceiling may be paid to officers working as Faculty Members in training establishments.
b) Principals / Directors / Vice Principals / Joint Directors of training establishments may be paid Special Allowance @ 25% of their pay without any ceiling.
20.  Hill and Fuel Allowance
      20% of Pay be paid as Hill and Fuel Allowance without any ceiling.
21. Hardship Allowance
Officers posted to North Eastern Region and Andaman & Nicobar Islands may be paid Hardship
Allowance @ 20% of pay without any ceiling.
21. Special Area Allowances
a) Special Area Allowance @ 10% may be paid to officers without any ceiling working in special areas as defined by Government of India.
21.  Deputation Allowance
@ 15% of pay be paid as Deputation Allowance without any ceiling.
22.  Yearly Ex-gratia payment
      One month’s gross emoluments to be paid annually to all officers as ex-gratia.
23.  Tax
      The compensation package should be net of taxes. Bank should bear all the taxes that an employee is assessed.


                                  Part B- Superannuation Benefits

1.      Provident Fund
a.      Contribution to PF be 12% of Pay +DA.
b.      Interest  @ 12% per annum be paid  on PF on quarterly basis
c.       Retiring officers be allowed to retain their PF balances with the bank up to five years with accrual of interests. Enabling provision may be made in the PF regulations.
2        Gratuity
d.      Quantum of gratuity entitlement should be one month’s gross salary for every completed year of service without any ceiling.
e.      Ceiling of Rs 9.0 lakh for the first 20 years be removed.
f.        Additional compassionate gratuity should be raised to Rs.10 lakh.
g.      Income tax liability on gratuity should be borne by the bank
3        Pension
h.      The existing pension with different DA structure should be revised by merging DA with basic pension.
i.        Basic pension should be raised to 67.5% of the average pay of last 10 months or last pay drawn whichever is higher. 
j.        Commutation at 40% of basis pension be allowed.  For every year of service beyond 30 years 1% of pay be added as basic pension.
k.       Pension Scheme should be suitably extended to pre-1986 retirees pending this ex-gratia of Rs.1 lakh per annum to be extended to the retired officer or their families.
l.        Option for pension should be re-opened during every revision of pay scales. The option may also be allowed to be exercised by an officer two years before his/her retirement.
m.    Commutation facility should be given to nominees of pension optees in case of optee’s death before retirement
n.      Family pension be 40% of last pay+ DA drawn by deceased without any ceiling. 
o.      Ex-gratia of Rs.36,000/- per annum on lumpsum basis towards medical expenses be paid to family pensioners’.
p.      Pension should be revised as and when the pay of serving officers is revised
q.      Full pension should be paid to officers on completion of 20 years of service, with grace period of 13 years.
r.       Commutation value of every rupee surrendered should be enhanced by 20% instead of 1.67% of the additional surrendered PF value and full pension should be restored after 10 years of service.
s.       The ceiling and tapering in the family pension should be done away with.
t.        In case of death of an officer in harness, bank should pay to the family of the deceased, the last gross salary drawn till the actual date of superannuation of the deceased and family pension after the actual date of superannuation.
u.      All irritant/retrograde clauses for pension eligibility to be removed.
v.       Past service in government /government sponsored institutions should be reckoned for pension.
w.     Definition of family for pension/ compassionate gratuity may include dependent parents/nominees of officers.
x.       Dearness relief on basic pension be paid at 125% of neutralization.
y.       100% DA neutaralization for retirees before 01 February 2005.
z.       The loss of 1.67 % in PF account for pension optees be credited to a separate account and refunded at the time of retirement.
aa.  All the loans outstanding against the officer dying in harness should be waived.
4        Encashment of Leave
bb.  Encashment of unavailed OL should be enhanced to 12 months and tax liability on encashment of leave should be borne by bank.
cc.   Encashment of unavailed sick leave at the time of retirement be allowed and the tax liability be borne by the bank.
5        Third retirement benefit
      Bank should introduce the third retirement benefit in the form of CPF.
6        Benevolent Fund for additional Superannuation benefit
dd.  A Benevolent Fund should be set up by the bank for additional superannuation benefits to officers.
ee.  The additional benefits to be extended to officers may be decided in consultation with NBOA from time to time.
7        GSLI
Assured coverage under GSLI should be enhanced to Rs. 50 lakhs for all officers.

8        Post Retirement Allowance
Post Retirement Allowance on tappering basis may be granted to retiree officers to adjust themselves with the changed social and economic status.

Officer/ Grades
Amount  Per Month
E & D
C & B
9        Perquisites
The existing perquisites available to officers to be retained post-retirement in a staggered manner as below
First year
Second year
Third year
Fourth year
Fifth year


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