SBI Launches VRS Scheme For These Employees: 50% Salary Offered For Leaving The Job (Eligibility, Rules, Exceptions)

India’s largest bank: SBI (State Bank of India) has launched a VRS or Voluntary Retirement Scheme for all employees.

If this VRS scheme is successful, then SBI will end up saving more than Rs 2000 crore.

Find out the terms and conditions, and eligibilty criteria for SBI’s VRS scheme right here!

SBI’s Voluntary Retirement Scheme: Eligibility, Benefits, And More!

The SBI has also launched a voluntary retirement scheme for its employees, which will be termed as the ‘Second Innings Tap-Voluntary Retirement Scheme-2020 (SITVRS-2020). Apparently, this scheme will be for those employees who haven’t been given three or more consecutive promotions.

The bank’s policy states that this scheme has been developed to give a respectable farewell to such employees so that they will be able to build a career elsewhere. Another intention behind this is the optimization of costs and human resources. 

SBI VRS Eligibility

This scheme will be offered to employees who have completed 55 years of age and have been working for 25 years. It will also be available for employees who have any health issues or problems with movement.

This scheme will also be available for employees of banks that have been merged with the SBI. 

Employees such as CA, CFA, forex dealer, and those dealing with risk management will not be eligible for this scheme along with contract staffers. If any employees have been suspended, or are being investigated by central investigative agencies like CBI and ED will alos not be offered this scheme. 

Additionally, the employees who avail of this scheme will also be able to reconnect with the bank after a gap of two years.

Benefits Of SBI VRS

Employees who opt for this scheme will be given a salary equal to 50% of their remaining job term. It will not be more than the amount of their salary (existing) of 18 months. Additionally, income tax will also be deducted as per the rules on salaries. The rules also specify that gratuity and provident fund will be given along with pension and leave encashment. 

Housing loans car loans education loans will also be offered to the employee at concessional rates under the bank’s policy. If a loan has been taken by the employee it will have to be repaid first. Employees will also be given travel and baggage allowance. 

The employee can buy furniture or other things on behalf of the bank they will have to pay the money according to the rules set by the bank. 

VRS Holders Cannot Challenge The Money

A condition set by the bank is that the employee will not be able to challenge the amount that has been awarded to them in the settlement and neither will the successor of the person be able to legally challenge any case that is related to the bank’s scheme.

This scheme will be open for customers from December 1 every year till the month of February. Anyone who wants to withdraw their application can do that within 15 days.

The bank has estimated that as many as 11565 offices and 18265 junior employees will be able to avail the scheme.

Also, if all the employees that have been estimated opt for this scheme, then SBI will be able to save as much as Rs. 2171 crore.

The bank has also estimated that if 30% of the staff opts for the VRS, there will still be a savings of Rs.1663 crores on the bank’s part. These estimates have been calculated by the bank on the basis of the July salary. 

We will keep you updated, as more details come in.