SBI has said the associate banks had not merged with them during demonetisation and hence the responsibility of paying compensation lies with the five banks and not the SBI
More than 70,000 employees of banks associated with the State Bank of India (SBI) have been asked to return the money paid to them for working overtime during demonetisation, according to a report by India Today.
This includes employees of State Bank of Patiala, State Bank of Hyderabad, State Bank of Mysore, State Bank of Travancore and State Bank of Bikaner & Jaipur — all of which were merged with SBI on April 1, 2017.
The employees had been promised "overtime compensation" for the "extra hours" they worked during the period, the report suggests.
SBI has told all its zonal headquarters that only "its own employees" were supposed to get the money for extra work then and not those who were employed with its erstwhile associate banks.
The bank has also instructed zones to examine recovery of "compensation" given to the employees of such erstwhile associate banks, it adds.
SBI has said the associate banks had not merged with SBI during demonetisation and hence the responsibility of paying compensation to the staff lies with the five banks and not the SBI.
According to the report, the communication states, "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."
Officers were compensated as high as Rs 30,000 while other staff were compensated around Rs 17,000. It was paid from what is called the "out of pocket expense between March and May this year", it adds.
Bank unions have claimed that the recovery order was unfair as a merger automatically means takeover of both assets and liabilities of merging entities.
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