Employees of SBI, the country’s largest bank, are facing a major setback. According to sources, SBI has come up with a voluntary retirement (VRS) scheme, which could cover 30,190 employees.
The bank says the decision was made to cut costs. The move will save more than Rs 2,000 crore. The total number of SBI employees was 2.49 lakh as on March 31, 2020, which was 2.57 lakh as on March 2019.According to sources, a draft for VRS has been prepared and is now awaiting board approval. The name of this proposed VRS will be Second Inning Tap VRS 2020.VRS was introduced by SBI in 2001. As per the draft, SBI’s VRS scheme will be open to all such permanent officers and employees. Those who have served in the bank for 25 years or have crossed the age of 55 years.The scheme will be open from December 1 this year to the end of February 2020. This means that applications for VRS will be accepted during this period. A total of 11,565 officers and 18,625 employees will be eligible for the VRS scheme as per the proposed draft.It said that if even 30 per cent of the employees eligible for retirement under the scheme opt for VRS, SBI would save about Rs 2,170 crore under the July 2020 pay-based estimate.Employees who accept the VRS option will receive 50 percent of the salary in the form of ex gratia for the remaining service period up to the actual retirement date.Apart from this you will also get other benefits like gratuity, pension, provident fund and medical benefits. An employee retiring under the scheme will be eligible to rejoin the bank after a fixed period of two years from the date of retirement.