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Fixation of Salary of Ex-servicemen re-employed in Public Sector Banks: Clarification by DFS (Finmin)

Ex-servicemen re-employed in banks who retired on/or after 01.01.2006 are eligible to pay fixation in banks based on the pay drawn by them at the time of discharge from the Defence Services which would include band pay Plus grade pay but it does not include MSPAs it created confusion among banks over uniform implementation of the DoP&T’s Office Memorandum dated 08.11.2010 the circular was treated as withdrawn.

Reproduced text of FinMin letter to DESW dated 28.08.2012:-
GOVERMENT OF INDIA 
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES 
“JEEVAN DEEP”
10, PARLIAMENT STREET, NEW DELHI-110 001

No. F. No.4/1/2012-SCT (B)

dated 28-08-2012

Dear

Please refer to your D.O. No. 12(35)/2011/D(Res-1), dated 24.04.2012 regarding grievances of ex- servicemen re-employed in Public Sector Banks for fixation of their salary in banks.

2. In this connection, 1 would like to mention that the Department of’ Financial Services had circulated instructions/directions/circulars such as of the DoP&T’s earlier OM No. 3/ 19/2009-Estt.PayII dated 8.11.2010 as well as the Ministry of Defence (MoD’S letter No. 1(4)/2007/D(Pen/Policy) dated 09.02.2011 to all Public Sector Banks(PSBs)/Financial Institutions (FIs) and Insurance Companies (ICs) for compliance.
3. The Indian Banks’ Association (IBA) sought clarification from DES on re-fixation of pay to ex- servicemen re-employed in their Public Sector Banks on or after 01.01.2006. Based on DoP&T’s OM dated 8.11.2010, it was pointed by this Department vide its letter No. 4/1/2010-SCI (B) dated 23.03.2012 that Ex-servicemen re-employed in banks who retired on/or after 01.01.2006 are eligible to pay fixation in banks based on the pay drawn by them at the time of discharge from the Defence Services which would include band pay Plus grade pay but it does not include MSP. As it created confusion among banks over uniform implementation of the DoP&T’s Office Memorandum dated 08.11.2010 the circular was treated as withdrawn.
4.  It has therefore been reiterated that DoP&T’s above instructions may be followed in letter and sprit.

With regards,

Yours faithfully,
(L.K. Meena )
Source Image: http://media.dgrindia.com

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COMMENTS

WORDPRESS: 6
  • Anonymous 9 years ago

    The Policy letter is fully applicable in PSU, Autonomous Bodies under various Ministries of the Government.

    The Pay of a Re employed Defence Officer in any PSU, Autonomous Body is to be fixed at the Scale of Last Pay Drawn by him/her in the Defence Forces. This is irrespective of the Scale attached to the post in which the Defence Personnel is re employed.

    Dr Jitender Barua,

  • Anonymous 9 years ago

    Sir
    i have joined in railway after retired from Indian Navy on 31 12 2007 i want to know can my fixation may be done by this dopt letter on which banks are fixing the pay for ex servicemen
    pls advice me
    thanks

  • Kamal Bora 9 years ago

    Is this policy cover other PSU like Food Corporation Of India, if not kindly inform me that is there any other circular regarding pay fixation of Ex-serviceman in PSU.

  • it is quite confusion that a person who retired in may 2007 when da was 6 percent and he get job in bank in may 2011, there is no benifit of pay fixation being he get job after 4 yrs when da was 51 %. is any cir or letter where it has been stated that at least he could protect their basic pay last drawn ?.

  • RAWAT 10 years ago

    Dear,
    Pls correct the heading, go through the letter carefully..
    It withdraws its earlier letter, which says defence personnel on re-employment will not get MSP.

    It means, now they will get it. as per the earlier memo of DoPT.
    THANKS

    FAUJI BHAI