Over 70,000 employees of associate banks of SBI, which merged with the lender in 2017, have been asked to return “overtime compensation” for “extra hours” they worked post demonetisation, according to reports citing an SBI circular. SBI said the associate banks hadn’t merged with it at time of demonetisation and five employer banks were responsible to pay the overtime compensation.
The SBI has issued a communication to all the zonal headquarters saying that only “its own employees” and not those, who were employees of the E-Ab or erstwhile associate banks were supposed to get the money for extra work during note-ban window from it.
The State Bank of India has instructed its various zones to examine the recovery of the “compensation” given to officers of its erstwhile associate banks. The SBI communication states that compensation was meant for exclusively for those, who were working in SBI branches.
It states that as the erstwhile associate banks had not merged with the SBI at the time of demonetisation, the responsibility to pay the staff compensation for overtime lies with the five employer banks and not the SBI. These five banks were autonomous entities back then, the SBI argues.