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Compensation trends in the Indian Banking sector and the various benefits that are offered to the employees of the RBI Under RBI Act
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BFSI SECTOR
• Banking, Financial Services and Insurance
• Indian banking industry the third largest in the world by 2025
• The present Rs 64 trillion (US$ 1.17 trillion) Indian banking industry is governed by
the Banking Regulation Act of India, (1949)
• RBI manages the country's money supply and foreign exchange and also serves as a bank
for the Government of India and for the country's commercial banks
• The Indian economy will require additional banks, and expansion of existing banks to meet
its credit needs
RESERVE BANK OF INDIA (RBI)
• RBI is the premier employers of India.
• It is the giant of money market and banker to the nation.
• Reserve Bank employees, generally, have a 5-day week at work, postings in metros or state
capitals, easily adjustable work atmosphere and best in industry pay packages
RBI HIERARCHY LEVELS
• Seniority levels of RBI Officers are divided into Groups (A to F)
• Group 'A' is junior-most while Group 'F' is the senior-most level containing Officers like Deputy-
Governor, Governor, etc.
• All these officers collectively are called as Class-I employees
• Apart from these employees RBI also has a large number of Class-III and Class-IV employees which
work as service staff and other subordinate levels
• There is no Class-II level in RBI
RECRUITMENT
• Almost annually, direct recruitment of Officers is carried out at Group 'A' & 'B' levels and at Group 'C'
& 'D' levels for experienced people.
• While Group 'A', 'C' & 'D' recruitment is nominal
• There are frequent recruitment of college graduates and postgraduates at Group 'B' level through
examinations conducted by Reserve Bank of India Services Board (RBISB)
• Salaries of officers are also differentiated on the basis of these levels.
BASIC PAY
CADRE LEVELBASIC PAY AT START
OF SCALEANNUAL INCREMENT
GROUP 'A' 17,100 1,000
GROUP 'B' 21,000 1,000
GROUP 'C' 28,350 1,000
GROUP 'D' 39,850 1,200
GROUP 'E' 42,300 1,300
GROUP 'F' 60,600 1,600
• Basic pay or base salary is the amount on which other components of salary will be based
• Basic Salaries for Group 'B' Officers are 21000.
• These will be supplemented by Dearness Allowance (58+ %), House Rent Allowance (10+
%), etc. making the gross salary well above 40,000
LOCAL AND FAMILY ALLOWANCE
• All Officers are eligible for it. it is available for all Officers other than Group 'F'.
• It is subject to maximum ceiling which varies with Level
CADRE LEVEL LOCAL ALLOWANCE L.A. CEILING FAMILY ALLOWANCE F.A. CEILING
GROUP 'A' 5% OF BASIC 1,300 4% OF BASIC 1,100
GROUP 'B' 5% OF BASIC 1,300 4% OF BASIC 1,100
GROUP 'C' 5% OF BASIC 1,300 4% OF BASIC 1,100
GROUP 'D' 5% OF BASIC 1,600 4% OF BASIC 1,200
GROUP 'E' 5% OF BASIC 1,600 4% OF BASIC 1,200
GRADE AND SPECIAL ALLOWANCE
• These allowances are given to all officers who are confirmed in their grade. In addition to being
confirmed,
• Officers should satisfy the eligibility criteria. The amount of Grade and Special allowance per
month are as follows
CADRE LEVEL GRADE ALLOWANCE SPECIAL ALLOWANCE
GROUP 'A' 1,500 2,500
GROUP 'B' 2,250 2,500
GROUP 'C' 4,500 2,500
GROUP 'D' 6,750 2,500
GROUP 'E' 9,000 5,500
GROUP 'F' 10,000 0
MONTHLY REIMBURSEMENTS - EDUCATIONAL, HOUSEHOLD AND TELEPHONE
Employees are also eligible for reimbursement of amounts incurred on Education fees, Telephone
bills and also for employing domestic helpers.
CADRE LEVEL EDUCATIONAL (Rs) HOUSEHOLD (Rs) TELEPHONE (Calls)
GROUP 'A' 2,000 2,000 500
GROUP 'B' 2,000 2,000 800
GROUP 'C' 2,000 2,000 1,500
GROUP 'D' 2,000 3,000 2,000
GROUP 'E' 2,000 3,000 2,000
GROUP 'F' 2,000 4,000 3,500
CONVEYANCE EXPENSES
• All the employees are eligible for a quota of petrol depending on their City and Grade.
• Those living in Mumbai, New Delhi, Chennai, Hyderabad or Bangalore get an extra 30 liters
above the quota for the Group.
• Those who don't own a car are given cash instead of petrol.
• However, it is advantageous for car owners because the cash payment is less and also the fact
that car owners also receive monthly vehicle maintenance allowance
CADRE LEVELPETROL FOR CAR
OWNERS (Ltrs)REIMBURSEMENT FOR
OTHERSCAR MAINTENANCE
ALLOWANCEDIRVER ALLOWANCE
GROUP 'A' 120 4,000* 0 0
GROUP 'B' 120 4,000* 0 0
GROUP 'C' 150 5,000* 1,000 5,500
GROUP 'D' 180 6,000* 2,500 5,500
GROUP 'E' 210 6,000* 2,500 7,000
GROUP 'F' 270 6,000* 2,500 7,000
ANNUAL REIMBURSEMENTS - MEDICAL, BOOK GRANT AND BRIEFCASE
• Apart from monthly reimbursements, there are certain allowances which are permitted to be
reimbursed annually.
• These are eligible on showing the receipts or bills. The maximum permissible amount for
medical, book grant and briefcase allowances are
CADRE LEVEL MEDICAL BOOK GRANT BRIEFCASE
GROUP 'A' 4,000 4,000 5,000
GROUP 'B' 4,000 4,500 7,000
GROUP 'C' 4,000 5,000 7,000
GROUP 'D' 5,500 6,000 9,000
GROUP 'E' 5,500 6,000 9,000
GROUP 'F' 5,500 7,000 9,000
EASY LOAN FOR PURCHASE OF CAR/BIKE/PC
• Concessional loans are available to all employees planning to purchase either a car, bike or a
Personal Computer/laptop.
• Loan can be retaken after repayment of old loan and expiry of minimum period of 4,1 and 5 years for
Car, Bike and PC, respectively.
CADRE LEVEL AMOUNT PERMISSIBLE
GROUP 'A' 70,000
GROUP 'B' 70,000
GROUP 'C' 90,000
GROUP 'D' 1,10,000
GROUP 'E' 1,50,000
GROUP 'F' 2,00,000
PURCHASE ITEM LOAN ELIGIBLE INTEREST RATE CONDITIONS
CAR 7,00,000 7%MAXIMUM LIMIT = 90% OF
COST
MOTOR BIKE 75,000 6%MAXIMUM LIMIT = 90% OF
COST
PC 50,000 6%MAXIMUM LIMIT = 90% OF
COST
MAJOR FACTORS DEFINING PAY
Bipartite Settlements with Workmen
• Indian Banks' Association has been representing managements of banks in negotiations with
recognized Trade Unions for wage settlement of disputes resolution since 1966
• This meeting is held every 4 years where the major changes and demands of the union are
discussed and implemented by all the banks which come under the agreement
Banks that come under this agreement
• Public sector banks
• SBI associate banks
• Private sector banks
• Foreign Banks
II Bipartite Settlement dated 12.10.1970
Major achievements of this settlement were abolition of classification of areas for the purpose of pay
scales, DA, reduction in span of scales of pay from 25 to 20 years. The settlement was signed with
single majority union in the banking industry viz. AIBEA
III Bipartite Settlement dated 01.08.1979
Under this settlement, State Bank of India also became a party to the Industry level Bipartite
Settlement along with other 'A' Class banks.
Commercial banks follow Hire & Fire policy
Exceptions are Old private sector banks which have been established before 1991
COMMERCIAL BANKING
• Commercial Banks are those profit seeking institutions which accept deposits from general public
and advance money to individuals like household, entrepreneurs, businessmen etc
• .
• Work with the prime objective of earning profit in the form of interest, commission etc
• The operations of all these banks are regulated by the Reserve Bank of India
• The main source of income of a commercial bank is the difference between these two rates which
they charge to borrowers and pay to depositors.
Examples of commercial banks – ICICI Bank, State Bank of India, Axis Bank, and HDFC Bank.
CLASSIFICATION OF COMMERCIAL BANKSScheduled banks
Banks which have been included in the Second Schedule of RBI Act 1934. They are categorized as
follows
• Public Sector Banks
The banks in which majority of stake is held by the government. Eg. SBI, PNB, Syndicate Bank, Union
Bank of India etc.
• Private Sector Banks
The banks in which majority of stake is held by private individuals. Eg. ICICI Bank, IDBI Bank, HDFC
Bank, AXIS Bank etc.
• Foreign Banks
The banks with Head office outside the country in which they are located. Eg. Citi Bank, Standard
Chartered Bank, Bank of Tokyo Ltd. etc.
Nonscheduled commercial banks
The Banks which are not included in the Second Schedule of RBI Act 1934.
RECRUITMENT
offering high salary packages with lucrative incentives to attract and retain their talented work force
SALARY IN COMMERCIAL BANKS
Salary by Years of experience
Salary offered by some banks
Bonus Offered
Salary by State or Province
SKILLS THAT ARE ESSENTIAL
• Analytical skills, capability to study regulation and desire to get business are must-haves to
build a long and successful career in the BFSI sector.
• And to grow beyond the first two levels, inter-personal skills are most essential
• It is very important for new joiners to understand that they are using public money; hence
sourcing business must be done with extreme care.
• Diligent young people with patience will be useful in the Banking sector
KEY SKILLS
Key banking skill 1: intellect
A commitment to learning and a hunger for dealing with challenging situations is key.
Key banking skill 2 : innovation
entrepreneurial skills are vital, meaning the ability to think innovatively and spot areas for development.
Key banking skill 3: resilience
Ability to work under pressure, such as with impending deadlines and for prominent clients.
Note :
Detailed JOBS In the sector with the annual pay depending on the experience will be found in
the last two pages of the report
The 3 page tables gives complete details about the kind of jobs at various hierarchy levels and
the salary that is usually paid to these officers
Thank you
