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Vigilance/Disciplinary Stipulations governing RBI Employees

The vigilance / disciplinary stipulations governing the employees of the Bank are as under:

i) All classes of employees are required to obtain prior permission from the Bank for borrowing / standing surety in respect of loans from external organisations. The prior permission is required for loan amount exceeding ₹15 lakh for officers, ₹10 lakh for Class III employees and ₹5 lakh for Class IV employees. The said ceiling shall be the aggregate from all external sources put together, whether by way of loan / standing surety. Applications seeking permission for standing surety / guarantee for borrowings for commercial purposes should be rejected straight away.

ii) Members of Tender Committee are required to give an undertaking at an appropriate time that none of them has any personal interest in the Companies / Agencies participating in the tender process. Any member having interest in any company should refrain from participating in the Tender Committee.

iii) Officer/staff is required to obtain prior permission for acquisition/disposal of immovable properties and report the individual transaction (acquisition and disposal) in movable assets exceeding twice the basic pay, within a week. The officers and class III staff are also required to submit Annual Property Statements indicating immovable properties and shares/securities held as on 1st January and 1st July every year respectively. These Statements are scrutinized to verify whether the declared assets are disproportionate to their known sources of income.

Restrictions on investments are as per Regulations 43 and 44 (2) of RBI (Staff) Regulations, 1948.

'Employees' quota shares/ securities' - Acquisition of shares / securities from the employees quota by any employee of the Bank tantamount to making false representation and will be deemed as an act of misconduct under the RBI (Staff) Regulations, 1948 liable for appropriate disciplinary action. This will also apply to acquisition of shares/securities out of employees' quota in the names of family members except in cases where family members are bonafide employees of issuing company.

Promoter's quota shares/ securities – Applying for and accepting allotment of shares from promoter's quota will be construed as violation of the provisions of Regulation 44(2) of the RBI (Staff) Regulations, 1948. If an employee desires to acquire shares / securities from promoter's quota under exceptional circumstances (Chief Promoter / director of the company being his/her close relative), he/she should seek prior approval furnishing full details including source of funds. No employee is to be allowed to purchase from promoter's quota by claiming to be a friend / associate of Chief Promoter/ Director.

iv) Officers who are deputed to entities regulated by RBI for official dealings (inspection, scrutiny, verification etc.) are required to furnish a declaration stating that the officer does not have any family member in the employment of that organisation.

v) Whenever any member of the family of an officer secures employment in any capacity in a bank, including a Co-operative bank, financial institution, assisted company/ institution, other entity regulated by the Reserve Bank or with any constituent of the Reserve Bank or enters into any professional/ business dealings like audits, consultancy, agency, contracts, etc., with these entities, the details of such employment or professional/ business dealings shall be reported to the Bank, by the officer concerned, in the prescribed format, together with all material particulars, within a week of securing such employment or professional / business dealing by their family member/s’. The objective of this reporting system is to ensure that prima facie the employment or professional business deal has been secured in normal course without any favourtism or influence.

vi) Information on private visits undertaken by all categories of employees to foreign countries is collected on an annual basis and examined / scrutinized. A certificate in this regard is submitted to the Central Vigilance Commission.

vii) Offices / departments are advised to ensure prompt and appropriate action on complaints against members of staff regarding defaults in repayment of loans and in case of excessive indebtedness.