Leave Fare Concession

Leave Fare Concession is a fringe benefit given to the permanent employees of the Bank. This benefit helps the
employees to travel and see new places. Travel enables one to see new people, new customs and new pattern of
culture and thus widens his/her scope of knowledge.

1. Definition of ‘Family’

1.1 An employee can avail the Leave Fare Concession for himself/herself and also for his family
members.

1.2 For the purpose of LFC, the expression `Family' of an employee shall mean the employee‟s
spouse, wholly dependent unmarried children (including step children and legally adopted children) as also parents
ordinarily residing with and wholly dependent on the employee.

1.3 The term wholly dependent child/parent shall mean such member of the family having no
income or a monthly income not exceeding Rs.2,550/-. If the income of one of the parents exceeds Rs.2,550/- p.m.
or the aggregate income of both the parents exceeds Rs.2,550 p.m., both the parents shall not be considered as
wholly dependent on the employee.

1.3.1 An employee may, however, claim LFC in respect of dependent parents not ordinarily residing
with him by giving a suitable declaration and satisfactory evidence of such dependency.

1.4 For the inclusion of wholly dependent parents under the definition of „family‟ where it concerns
a female employee for the purpose of LFC, the following terms shall apply:

1.4.1 The parents of the female employee should ordinarily be residing with her.

1.4.2 The female employee should be the only earning member in that family. If there are other
members earning and they are married daughters, Bank may consider on merits the claim of the employee for
inclusion of the parents.

1.4.3 Parents of the female employee should not be in receipt of a monthly income exceeding
Rs.2,550/- either individually or in aggregate.

1.4.4 A married female employee can include her natural parents or parents-in-law under the
definition of family - but not both - provided that the parents/parents-in-law are ordinarily residing with and wholly
dependent on her.
Leave Fare Concession

2. Place of Domicile/Home Town

2.1 Each workman shall, if he has not already done so, furnish to the Bank a written declaration of
his place of domicile.

2.2 An Officer/Award staff availing LFC to his native place/Home town should go to the same
place as he/she has declared in his/her service records. If there is any change in native place/Home town, then he/she
may represent to HO: HRM Department/Circle Office giving valid reasons for such a change. This request must be
made before availing LFC and not at the time of/after the submission of the LFC bills.

2.3 The places of domicile/home town cannot be changed more than once during the entire service
of an officer/award staff.

2.4 The criteria for accepting the change in the place of domicile of an employee are as furnished
below:

a. Whether the place declared by the officer/award staff is the one which requires his/her physical
presence at intervals for discharging various domestic and social obligations, and if so, whether after his/her joining
in the Bank, the officer/award staff had been visiting that place frequently.
b. Whether the officer/award staff owns residential property in that place or whether he / she is a member of
the joint family having such property there.
c. Whether his/her near relatives are permanently residing in that place.

d. Whether prior to his/her entry into the services of the Bank, the officer/award staff had been
living there for some years.

2.5 The criteria, one after other, shall be applied in case where the immediately preceding criterion
is not satisfied.

2.6 Leave Fare Concession for travel for rest and recuperation shall be granted from the place of
work to any place in India situated at not more than the distances permitted hereunder.

2.7 Travel from the place of work to the place of his domicile, if situated within India (provided,
however, that in the case of those subordinate workmen or the watch and ward staff, whose domicile is situated in
Pakistan, Bhutan, Sikkim, or Nepal, the leave fare concession payable will be the actual return railway fare or
steamer fare from his place of work to the place on the Indian borders nearest to his place of domicile).

2.8 LFC is permissible for journeys within the territories of India only. (Andaman and Nicobar
Islands fall within the territory of India)

2.9 An officer/award staff whose native place is situated outside India, shall be eligible for
reimbursement of train fare by their entitled class, from the place of work to the nearest station within Indian border
and back.
 Leave Fare Concession

2.10 In respect of female married employees, their native place/home town, on their marriage, would
change to that of their husband's native place/home town and therefore, immediately after their marriage, they should
inform this fact to HO: HRM Department/Circle Office.

3. LFC Block

3.1 For Officers

3.1.1 During each block of 4 years, an Officer shall be eligible for leave fare concession for travel to
his/her place of domicile once in each block of two years. Alternatively, he/she may travel in one block of two
years to his/her place of domicile and in another block of two years to any place in India by the shortest route.

3.1.2 Other terms and conditions subject to which the leave travel concession may be availed of by an
officer, shall be as decided by the Board from time to time.

3.2 Extension of LFC Block

3.2.1 Based on the specific recommendations of the Branch Manager or the Department Head, the
LFC Block of an employee can be considered for extension by the Competent Authority for a period not exceeding 3
months from the due date of the respective block. This is done purely at the discretion of the Management and thus,
cannot be demanded as a matter of right.

3.2.2 Circle Offices are empowered to consider requests and approve extensions for officers upto
Scale IV coming under their control subject to the following:

a. Extension should be for office exigencies only.

b. Such requests should be made before expiry of the respective block

c. Requests for extension should have been duly recommended by the Branch
Manager/Department Head/AGM.

d. Under normal circumstances extension shall be given only upto three months. In special cases,
extension for a further period of three months may be considered on a very selective basis and not as a routine that
also by HO: HRM Department only.

e. Under no circumstance, extension beyond six months shall be allowed.

4. LFC Rules

4.1 General

4.1.1 For availing LFC an employee should have completed at least 11 months‟ active service.
Leave Fare Concession

4.1.2 Permanent part-time employees drawing scale wages are eligible for LFC and leave encashment
on pro-rata basis.

4.1.3 An employee can take any kind of leave for LFC. Application for LFC should be sent
sufficiently early, say, at least one month in advance.

4.1.4 LFC can be availed during the joining time on transfer also provided the employee combines
the same with Casual Leave for one or two days.

4.1.5 Where husband and wife are both employees of our Bank, only one of them will be eligible to
claim LFC reimbursement for both end and the other spouse should surrender his / her corresponding LFC block. It
is not necessary that the other spouse should surrender the LFC throughout the career. This will not, however, affect
the Privilege Leave encashment for both husband and wife even though one has to surrender the LFC facility.

4.1.6 In case of a physically handicapped employee who is appointed under such category and is
eligible for payment of conveyance allowance in terms of the Government guidelines, a companion may accompany
the employee provided he/she does not have any member of the family in respect of whom he/she can claim the LFC.

4.1.7 An employee during his/her LFC may visit different places from the same centre but not the
same place more than once.

4.2 For Officers

4.2.1 An Officer by exercising an option anytime during a 4 year block or two year block, as the case
may be, surrender and encash his/her LFC (other than travel to place of domicile) upon which he/she shall be entitled
to receive an amount equivalent to 75% of the eligible fare for the class of travel by train to which he/she is entitled
upto a distance of 4500 kms (one way) for officers in JMG Scale I and MMG Scale II & III and 5500 kms (one way)
for Officers in SMG Scale IV and above. An officer opting to encash his/her LFC shall prefer the claim for
himself/herself and his/her family members only once during the block/term in which such encashment is availed of.
The facility of encashment of privilege leave while availing of Leave Fare Concession is also available while
encashing the facility of LFC.

4.2.2 LFC may be availed by an officer's family for travel prior to or after the employee
himself/herself avails LFC, provided the period between the date of completion of the journey by the family and the
date on which the employee commences his/her onward journey or vice versa does not exceed 4 months.

4.2.3 An Officer availing LFC to his native place should necessarily touch his native place and is not
entitled to claim any fare for the places visited beyond his native place. However, he/she can visit places beyond his
native places also, provided he/she does not touch his/her native place more than once.

4.2.4 He/she can touch an intermittent place any number of times while travelling to nearby places.
 Leave Fare Concession

4.2.5 Journey in all cases should commence from the place of work of the officer and shall be
deemed to have completed as and when he/she reaches his/her place of work. Therefore, journey performed by an
officer, after touching his/her working place, shall not be eligible for reimbursement.

4.2.6 The Officer should visit the place as declared by him in his leave application and the journey
performed by the other members of his/her family under LFC should also be for the pre-announced destinations.

4.2.7 An Officer can also claim LFC for eligible members of his family. if they ordinarily do not
reside with him/her at the place of work, either for both the way journey from the place where they ordinarily reside
to the place of his/her work and to the place of destination or directly from the place where they ordinarily reside to
the place of destination and back.

4.2.8 An officer availing LFC can take any route and travel in any class to reach the pre-announced
destination. But reimbursement will be limited to the fare he is entitled to by the eligible class by the shortest route to
the destination declared by him or actual amount of fare incurred, whichever is lower, subject to production of
tickets/details of tickets/vouchers.

4.2.9 Officers should mention in their leave application the place of visit clearly, i.e. whether to his
native place or any other place in India.

5. An officer and his/her family can opt to travel to different places of their choice, thus there
could be different destinations for the family members and the Officer, when LFC is availed under the head Other
places. While doing so, the officer should get prior permission for travel of his family and self by declaring the
respective destinations.

5.Encashment of LFC

5.1 General

5.1.1 Staff Members desirous of availing encashment of LFC have to apply in the prescribed format
to the Competent Authority as given in the following Schedule through the branch/office where they are working:

Staff Members in all the branches and Staff Training AGM of Circle Office/Circle Head.
Centres.

Staff Members of Inspection Centres. Asst. General Manager/Deputy

General Manager in charge of the
Circle Heads, all officers in scale V and above, Staff Inspection
CM/AGM Centre.
(HRM) of Head Office:
Members of Head Office and IMAGE. HRM Department.
Staff Members working in Subsidiaries/on deputation to Concerned Head of the
Regional Rural Banks. Subsidiaries/ Chairman of the
concerned Regional Rural Bank.
Leave Fare Concession

5.1.2 The application should be submitted in duplicate along with the application for sanction of
leave/LFC to the branch/office where the staff member works at least 30 days before the expiry
of the LFC block. Award Staff Members shall apply for the minimum prescribed leave i.e., 4
days to the leave sanctioning authorities. Officers can encash LFC with availment of leave on
LFC as per the leave rules given in this Manual.

5.1.3 After sanction of the leave, the application for encashment of LFC shall be forwarded to the
Circle Office/Competent Authority concerned, retaining one copy of the same for their files, along with a copy of the
sanction of leave/LFC.

5.1.4 The Circle Office/Competent Authority, on receipt of the application, shall scrutinise the same
and upon satisfying themselves about its correctness permit encashment of LFC.

5.1.5 The option for encashment of LFC is applicable for the staff members and his/her dependent
family members as a whole. As such, the request for encashment of LFC for self and permission to undertake LFC
journey by family members and vice-versa is not permissible.

5.1.6 If both husband and wife are employed in our Bank, only one of them is entitled to avail LFC
encashment (and not both).

5.1.7 Encashment of LFC, once sanctioned, cannot be modified.

5.1.8 In respect of LFC blocks which got extended by the competent authority, LFC encashment is
not permitted.

5.1.9 An officer by exercising an option anytime during his/her LFC block can surrender and encash
his LFC (other than travel to place of domicile) upon which he shall be entitled to receive an amount equivalent to
75% of the eligible fare for the class of travel by train to which he is entitled upto a distance of 4500 kms for each of
his/her journey (i.e., onward and return journey) for officers in JMG Scale I, MMG Scale II and III and 5500 kms for
each of his/her journey for officers in SMG Scale IV and above subject to deduction of admissible tax at source.

 Example

Assume that an Officer in Scale II wants to encash his entitlement of LFC.

As on date (20.12.2008), the II Tier AC fare for 4500 kms is Rs.2,581/- per adult passenger
Then, he is eligible to draw an amount of Rs.1,936 (being 75% of Rs.2,581/-) per unit for his onward
journey and a similar amount per unit for his return journey. In other words, he is eligible to get an amount
of Rs.3,872/- per unit towards encashment of LFC.

5.1.10 In case of children aged 5 years and above but less than 12 years, the encashment permissible is
half of the eligibility of adult members.
 Leave Fare Concession

5.1.11 An officer opting to encash his LFC shall prefer the claim for himself/herself and his/her family
members only once during the block/term in which such encashment is availed of.

5.1.12 The facility of encashment of privilege leave, while availing of Leave Fare Concession is also
available while encashing the facility of LFC provided the employee so encashing the facility of leave fare
concession proceeds on leave of any kind without any restriction on the number of days.

6. Encashment of Privilege Leave on LFC

6.1 General

6.1.1 Encashment of Privilege Leave under LFC is a travelling concession intended to augment the
cost of the LFC otherwise payable.

6.1.2 An employee is permitted to encash PL of his/her credit upto a maximum limit of one month
while proceeding on LFC in a block of 4 years.

6.1.3 For calculating the amount payable, the eligible salary shall be divided by 30 and multiplied by
the number of days to be encashed. The eligible salary shall mean the current month‟s salary and notional HRA
wherever applicable.

6.1.4 Encashment of Privilege Leave, while proceeding on LFC, shall be permitted as under:

a. For availment of LFC under 2 years block - maximum 15 days either in each block or 30 days
in one block.

b. For availment of LFC under 4 years block - maximum 30 days.

6.1.5 The amount received by the staff members on surrendering and encashing privilege leave
during service under LFC should be added to the total income and tax should be deducted at source. However,
Privilege Leave so encashed should not exceed 10 months in the total service of the employee.

6.1.6 In case an employee is not availing Leave Fare Concession, the facility of encashment of leave
would not be available to the family.

6.1.7 For the purpose of leave encashment, all the emoluments payable for the month during which
the availment of leave travel concession commences shall be admissible. Further, an officer at his option shall be
permitted to encash one day's additional privilege leave for donation to the Prime Minister's Relief Fund subject to
his giving a letter to the Bank to that effect and authorising the Bank to remit the amount to the Fund.

6.1.8 The encashment shall normally be made not before 15 days from the date of proceeding on
leave. In case of non-availment of leave/LFC, the amount of encashment of Privilege Leave so availed should be
recovered in one lumpsum.
Leave Fare Concession

6.1.9 While computing the emoluments for leave encashment of Officers who have been provided
with the residential accommodation, the notional HRA to be included, will be the following:

Sl. Officers working in Rate of HRA

No. Payable

1 Major "A" Class Cities and Project Area Centres in Group A 8.5% of Pay

2 Other Places in Area I and Project Area Centres in Group B 7.5% of Pay

3 Other places 6.5% of Pay

7. Mode of Travel and Class of Fare

7.1.1 The mode and class by which an officer can avail of Leave Fare Concession is the same as he/she
is normally entitled to travel on duty/transfer and other terms and conditions as given in Para 1.1 of Chapter 14 -
Reimbursement of Travelling Expenses of this Manual.

7.1.2 Officers of Scale II and III shall travel by air (Economy Class), only if the distance to be travelled
is more than 1000 kms.

7.1.3 Where the officer incurs Air fare for children below five years, he/she will not normally be entitled
to claim reimbursement for the same. However, this will be allowed, if the actual expenditure including the Air Fare
for the child is within the cost of train fares for eligible persons for the maximum permissible distance and within the
overall entitlement per unit.

7.1.4 Travel by Own Car

All Officers are permitted to travel by their own cars while availing LFC subject to the following
terms and conditions:

1. The vehicle should strictly be in the name of the officer.

2. Copy of the RC book has to be submitted.

3. Prior permission should be obtained from the concerned Zonal Office / HO: HRM Dept as the
case may be.

4. Fuel bills, Log Sheet containing details like opening and closing km. reading, date of journey,
places visited, etc., and toll receipts should be submitted.

5. Reimbursement will be restricted to the actual fuel expenses incurred subject to the ceiling
prescribed for use of personal vehicle for official purpose (`. 3.60 per k.m. for 800 CC and `. 4.50 per k.m. for 1000
CC and above vehicle) or the II AC train fare for the shortest and most direct distance between the place of work and
the destination whichever is lower.
 Leave Fare Concession

6. Officers as well as their dependent family members should necessarily undertake the proposed
journey in their own cars. No two separate journies will be permitted for self and dependent family members.

7. Actual toll charges will be reimbursed over and above the LFC eligibility subject to production
of bills.
7.2 General

7.2.1 Actual journey expenses by bullock cart/pony/camel/ferry boat for that part of the journey which of
necessity is to be covered by one of these means of transport in the absence of train/steamer/bus service shall be
reimbursed, subject to production of satisfactory evidence in respect of such journey to the nearest railway
station/steamer halt/bus link with a maximum of Rs.1.50 per km.

7.2.2 For the journey by bullock carts/pony/camel, in the absence of rail/road/steamer, evidence in the
form of stamped receipts should be produced. In such cases, the nearest railway station or steamer or bus link should
be mentioned. Distance travelled by such mode of conveyance should also be furnished.

7.2.3 Journeys performed by Private travels/cars/taxi/auto/tonga/rickshaw/entrance charges/luggage

charges/excess baggage charges/bed rolls charges etc. are not reimbursable.
7.2.4 An employee and/or his family when availing of LFC can travel beyond the maximum permissible
distance by a class lower than that to which he is entitled, in which case he will be paid the actual fare incurred
including reservation and sleeping berth charges, if any (irrespective of the number of stages in which the journey is
undertaken) or the first class fare for the distance permissible whichever is less.

7.2.5 If an employee incurs, in case of journey by train, any reservation charges the same will be
reimbursed to him/her in addition to his/her other entitlement.
7.2.6 Conveyance expenses within the prescribed rates, from residence to nearest railway station/bus
stand/air port/docks and vice versa as also similar expenses at the place of destination shall be reimbursed under
leave fare concession facility within the overall entitlement of the employee.

7.2.7 Where the children below the age of 12 years are charged bus fares, the Bank shall reimburse to the
employee the actual train fare for the journey of such children by the class to which the employee is entitled upto the
permissible distance or the actual bus fare incurred or road mileage at the current rate whichever is less.

7.2.8 An employee may undertake the whole or part of the journey by air either to his place of domicile
or to a place for rest and recuperation and he will be eligible to claim his actual expenditure, provided it is less than
or equivalent to actual travelling fares by his entitlement in case of journey to his place of domicile by a direct or
regular route or to the extent of the maximum distances indicated above, in case of journey to any place for rest and
recuperation by any route.

7.2.9 An employee may undertake the whole or part of the journey by air either to his place of domicile
or to a place for rest and recuperation and he will be eligible to claim his actual expenditure, provided it is less than
Leave Fare Concession

or equivalent to actual travelling fares by his entitlement in case of journey to his place of domicile by a direct or
regular route or to the extent of the maximum distances indicated above, in case of journey to any place for rest and
recuperation by any route.

8. Travel by Taxi

8.1 Subject to the overall entitlement available under 2 year/4 year block, the employees who are desirous
of travelling by taxi are permitted to travel under LFC only by the following authorised Taxis:

i. Tourist Taxis with live tourist permit (or)

ii. Taxis operated by Agencies who have approval/accreditation from Government Tourism
Department.

iii. Taxis operated by ITDC/STDC or Government Tourism Dept.

8.2 Taxis as a mode of travel can be availed of only in case of necessity for which prior approval should be
obtained from the sanctioning authority. While applying for LFC, the staff members who are desirous of availing
LFC by taxi should specifically mention in their application itself that they intend to travel by taxi and they would
comply with the instructions stipulated therefor.

 Note: Branch Managers being sanctioning authorities for leave and LFC at branch level shall also sanction for
travel of Branch Staff Members by taxi under LFC.

8.3 LFC by Taxi should be allowed only to a specified destination which may cover various Centres in the
enroute for which employees should specify the destination while applying for LFC by taxi and the name and
relationship of persons to be accompanied in the proposed journey by taxi.

8.4 No separate journey shall be allowed for the employee and his/her family for the LFC by taxi. In other
words, the staff should accompany his/her family in the proposed journey by taxi.

8.5 Employees should produce the following satisfactory evidence for claiming reimbursement:

8.5.1 In case of Taxis operated by ITDC/STDC

Money receipt from the ITDC/STDC indicating break-up particulars of taxi fare, expenses for
lodging/boarding/other expenses, if any. (Since only the taxi fare is eligible for reimbursement).
In case of taxis operated by Agencies with live Tourist Permit

8.5.2 In case of taxis operated by Agencies with live Tourist Permit

i. Money receipt from the Taxi Operator indicating break-up particulars of taxi fare, expenses for
lodging/boarding/other expenses if any (since only the taxi fare is eligible for reimbursement).

ii. Copy of Tourist Permit with copy of Vehicle Registration Certificate.

 Leave Fare Concession

iii. Copy of trip sheet indicating the opening reading and closing reading of speedometer
evidencing the number of Kms. run by the taxi and the places covered.

Note: It is also advisable to ascertain the approximate distance to be travelled by taxi and the permitted
rates per kilometer, other charges, batta, etc., from the passing official/desk officer so that there may not be any
rejections/disapproval in the bill on its submission.

8.5.3 Taxi fare rate and Driver batta applicable at various places while travelling on LFC is given below:

Place Taxi fare - Car (per Km) Driver Batta

Non-A/c A/C

Ahmedabad 6.50 7.00 150.00

Bangalore 6.00 7.00 150.00

Chennai 5.50 7.00 150.00

Chandigarh 6.50 7.00 150.00

Ernakulam 6.00 6.50 150.00

Hyderabad 5.50 6.50 150.00

Kolkatta 5.50 6.50 150.00

Mumbai 5.50 7.00 150.00

New Delhi 6.50 7.00 150.00

Pune 6.00 7.00 150.00

All other Places 5.00 6.50 150.00

8.5.4 An additional rate of Re.1.00 per km over and above the rates mentioned is permitted whenever the
travel is made to hill stations.

8.6 Travel by Private Taxis

8.6.1 Employees are permitted to travel by private taxis also due to non-availability of taxis operated by
ITDC/STDC in certain centres. The following conditions are to be observed by officers when travelling by private
taxis:
Leave Fare Concession

i. Prior permission from Head Office or the respective Circle Office has to be obtained to travel by private
taxi

i. Prior permission from Head Office or the respective Circle Office has to be obtained to travel
by private taxi

ii. Employee and his/her dependents cannot perform journey separately.

iii. The copy of the permit of the tourist taxi, trip-sheet and stamped receipt for the amount paid to
be produced.

8.6.2 Officers are also permitted to travel part distance by air and part distance by road/rail and
entitlement in such cases shall be as below:

i. For officers in JMG - II A/c sleeper rail fare from place of work to the destination applied
for

ii. For officers in MMG - Air fare for the distance actually travelled by air and II AC sleeper rail
fare for the remaining distance travelled by any other mode of travel.

iii. For officers in SMG - Air fare as above and I AC rail fare for the remaining distance travelled
by any other mode.

8.6.3 The reimbursement of expenses is restricted to the overall entitlement or actuals whichever is
lower.

9. Conducted Tours

9.1 Reimbursement of fare for journey undertaken by staff members in conducted tours organised by
reputed travel agents/tourist operators subject to the submission of the following in proof of the journey is also
permissible.

i. Certificate/receipt from the travel agent/tourist operator in the prescribed format (Annexure
16.2)

ii. Copy of the permit for the vehicle/tour issued by transport authority concerned.

iii. Copy of the tour schedule.

9.2 Claims for reimbursement of expenses for travel in conducted tours organised by reputed travel
agents/tourist operators will normally be reimbursed on production of the above three documents where the journey
exceeds 48 hours. In case of one day tours (for example, one day tours conducted between Delhi and Agra, Delhi
and Haridwar, etc.) the receipt from the travel agent alone is sufficient and the other documents are not required.

9.3 However, in cases of doubtful claims, copy of the passengers manifest attested by RTO/STAA will be
called for. It is advisable to undertake journeys in tours organised by travel agents/tourist operators approved by the
 Leave Fare Concession

State/Central Government and obtain all the necessary vouchers, as prescribed, from the travel agents/tourist
operators in their letter heads. Claims preferred without producing the documents prescribed above for the
reimbursement of expenses incurred for travel in conducted tours by travel agents/tour operators will not be
entertained.

10. Package Tours

10.1 Package tours conducted by Central and State Government Tourism Development Corporation
are eligible for reimbursement, subject to the production of receipts/certificates, giving break-up particulars
regarding the transportation charges, boarding and lodging etc.

11. Circular Tours

11.1 An employee availing LFC can also travel under Circular Tour tickets sponsored by Indian
Railways only, but the Claims for the same will be settled on the basis of actual amount of fare incurred or the
eligible amount whichever is less.

11.2 Circular Tour tickets issued by railways will be reimbursed only on the production of the
Circular Tour tickets, bearing the details such as name of the passengers, places visited, date of journey, cost of
tickets, etc.

11.3 Travel under Circular Tour tickets by any other Agency is not permitted. Travel under Circular
Tour Tickets arranged through Travel agents by booking a separate coach also will not be reimbursed under LFC.

12. TA Advance against LFC

12.1 Staff members can claim TA advance any time not exceeding 45 days prior to the
commencement of onward journey. The staff member should produce the onward journey ticket to the Bank and then
claim TA advance for the return journey. While granting advance for return journey, it should be ensured that such
advance is sought only within 45 days prior to the commencement of the return journey.

12.2 An employee shall be permitted to avail LFC, only after getting proper sanction from the
Competent Authority and advance shall be made only after obtaining Form-A (Annexure 16.3) from the staff
member concerned.

12.3 For the purpose of advance under LFC to workman/Officer the fare between the place of work
and place of destination by eligible Class by the shortest route only shall be given.

12.4 On no account an amount far exceeding the amount to which the employees are legitimately
entitled should be sanctioned. The advances should be released only for enabling the employee to book his passage
etc. and after the release, the employee should be asked to produce the ticket for verification.
The request of the employees for advance against TA/LFC should be carefully scrutinised by the sanctioning
Leave Fare Concession

authority and the amount of advance should be arrived at taking into account the eligibility criteria of the staff
concerned. When the staff member and the dependents are allowed to undertake journey on LFC on separate
occasions, the advance should also be arrived at separately for self and dependents based on the number of units and
be made available only 15 days ahead of the commencement of the respective journey.

12.5 The request of the employees for advance against TA/LFC should be carefully scrutinised by
the sanctioning authority and the amount of advance should be arrived at taking into account the eligibility criteria of
the staff concerned. When the staff member and the dependents are allowed to undertake journey on LFC on separate
occasions, the advance should also be arrived at separately for self and dependents based on the number of units and
be made available only 15 days ahead of the commencement of the respective journey.

12.6 The fare permissible alone should be advanced to an employee on the following conditions:

12.6.1 In case of outward journey on his undertaking to produce tickets before the commencement of the
journey or within 7 days from the date of advance whichever is earlier. On such evidence being produced, the fare
for the return journey will also be advanced subject to the condition that evidence of the return journey shall be
produced to the Bank within 7 days of the resumption of duties by the workman.

12.6.2 In case members of the employee‟s family avail of LFC before or after he himself avails of the
concession, the appropriate outward fares will be advanced against his undertaking to produce evidence of travel
within 30 days from the date of journey. The return fare will also be advanced subject to the condition that evidence
of the return journey is produced to the Bank not later than 30 days from the date of advance.
12.6.3 On production of tickets, particulars thereof must be entered in the Form-A which would have been
received at the time of granting advance.

12.7 In addition to TA advance, an employee availing of the LFC can, if he so requests, be advanced
any salary falling due during his leave period.

12.8 LFC advance will not be sanctioned to staff members when the advance availed by them for
LFC earlier remains unadjusted.

12.9 The unutilised portion of the advance availed should be repaid immediately, on rejoining duty.

12.10 After receiving the sanction for the LFC Bills, the Sundries Receivable account should be
adjusted immediately by recovering the balance of advance, if any, over the sanctioned amount.

12.11 Under no circumstance, the advance will be allowed to remain outstanding beyond three
months from the date of joining of the employee after his travel/LFC.

12.12 Recovery of advance in instalments should not be made without prior specific permission from
HO: HRM DepartmenT

13 LFC Bills
 Leave Fare Concession

13.1 The employee shall produce satisfactory evidence of the actual expenditure incurred either by
way of tickets or money receipts giving full details.

13.2 LFC bills should be submitted to HO/CO: HRM Department within 15 days from the date of
reporting for duty, in Form-B (Annexure 16.4), in duplicate duly forwarded by the Branch Manager. Bills submitted
after the specified time will not be entertained.

13.3 Excess amount of advance, if any, availed over and above the bill amount should be recovered
from the employee concerned, immediately, on rejoining duty and this fact should be noted by the Branch Manager
in Page 2 of Form-B.

13.4 In case of default/late submission of LFC bill, interest at 15% p.a. shall be charged for the
amount of advance availed from the date of such advance to the date of adjustment.

13.5 The true copy of the leave sanction order with LFC Block, should be enclosed, duly attested by
the Branch Manager.

13.6 An employee claiming reimbursement under LFC shall produce money receipts as evidence and
if the money receipt is not available, any other satisfactory evidence of travel along with a suitable explanation for
the non-production of money receipts should be tendered.

13.7 Details of onward and return journeys should be furnished in Form B. If the space is not
sufficient in the form, separate sheet may be attached. Receipts/tickets should be arranged separately in
chronological order and the ticket numbers to be mentioned beside each claim.

13.8 Officers/Award Staff will be reimbursed the fare for travel performed by public transport like
Government buses, train, steamer and air, subject to the production of tickets/money receipts. If the employees are
not in a position to produce the tickets/receipts with regard to journeys performed by train, a separate signed
declaration (Annexure 14.5) to the effect giving full particulars like ticket/PNR number, date/place of booking, date
of journey, destination, Class of travel, fare paid, train name, etc., should be clearly furnished.

13.9 In case of journey by train, any reservation or sleeper charges incurred by a workman shall be
reimbursed in addition to his/her other entitlement under LFC.

13.10 In case of non-subordinate staff, travel by air under LFC either to his place of domicile or to
any other place shall be entitled to be reimbursed the actual airfare so incurred or II tier Air-conditioned class by
train by a direct route in case of travel to place of domicile or to the extent of maximum eligible distance in case of
travel to any other place whichever is less.
Leave Fare Concession

13.11 Local conveyance charges incurred by the staff for their trips from house to Railway
Station/Airport/Bus Stand or vice versa are eligible to be reimbursed under Leave Fare Concession provided the
same is within the overall eligible limit of the staff member concerned.

13.12 If a part of the journey is performed by bus and the tickets are reported lost, claims for such
trips may be allowed on the basis of „continuity of journey’. In such cases, reimbursement shall be limited to
Second Class train fare or the actual bus fare claimed whichever is lower, depending upon the genuineness and
merits of the case.

13.13 The Manager/Head of the Department is requested to verify the entire bill with all the relevant
tickets and forward the bill with his attestation by Registered Post or approved Courier after satisfying himself that
the bill conforms to the above guidelines.

13.14 After receiving the sanction for the LFC bill, the balance of advance amount over the
sanctioned amount, if any, should be recovered from the staff. Any amount payable, over and above the advance,
shall be credited to the account of the staff concerned.

13.15 On receipt of sanction of LFC bill from HO/CO, representation if any thereon, should be
submitted within 15 days from the date of receipt of sanction at the branch/office except where the staff member is
on sanctioned leave, in which case he/she should prefer his/her representation within 15 days immediately after
rejoining duty.

13.16 Any representation submitted after the expiry of the stipulated time limit will not be entertained.

13.17 Under any circumstances, submission of TA bills and adjustment of excess if any, should not go
beyond 3 months from the date of availment of LFC.

13.18 Interest at 15% will be charged for the outstanding amount from date of advance to date of
adjustment, if the bill is not submitted within 15 days after reporting for duty.

13.19 All journey particulars/tickets are subjected to test-check and scrutiny and whenever any doubt
about the journey performed by an employee arises, a reference shall be made to the Railway/Transport Authorities
concerned to ascertain whether the journey particulars declared by the employee are correct.

13.20 Where the journey particulars/tickets furnished by the employee are found false/bogus,
departmental action shall be instituted against him/her. Committing fraud in LFC/TA Bills is a serious one and shall
be treated as a calculated/preplanned fraud committed or an attempt to commit fraud on the Bank and amounts to
misappropriation of Bank funds.

13.21 As the misconduct involves moral turpitude of the employees, the matter shall be viewed more
seriously and the maximum punishment, as applicable for gross misconduct, shall be awarded.
 Leave Fare Concession

13.22 Competent Authority for passing TA Bills

13.22.1 For all staff members working at branches and offices coming under the control of Circle
Offices, the respective Circle Head shall authorise the TA bills under LFC.

13.22.2 For all staff members working at offices coming under the control of Head Office, the Chief
Manager, HO: HRM Department shall authorise the TA bills under LFC.

14. Reimbursement of Sight Seeing Charges

14.1 Local sight seeing charges at the places of visit are eligible for reimbursement provided the
same is within the overall eligible limit of the staff member concerned and the staff undertakes the travel as part of
his/her LFC in tours conducted by State/Central Government Agency/ITDC/accredited agencies or by State owned
city/town buses or local train services.

14.2 Local sight seeing by taxi is not permitted.

15. LFC as a Perquisite for Income tax purpose (Sec.10(5) read with
Rule 2-B)

15.1 Income Tax rules providing for exemption of reimbursement made under leave fare concession
availed of by an employee for himself/herself and his/her family for going to any place in India while in service or on
retirement from or termination of service have been amended with effect from 1st October 1997. As per Income Tax
(first Amendment) Rules, 1998, the exemption of the amount reimbursed shall be subject to the following conditions
and limit:

15.1.1 Where the journey is performed by Air, an amount not exceeding the Air Economy class fare of the
National Carrier by the shortest route to the place of destination.

15.1.2 Where places of origin of journey and destination are connected by rail and the journey is
performed by any other mode of transport other than by Air, an amount not exceeding the air-conditioned first class
rail fare by the shortest route to the place of destination and

15.1.3 Where the places of Origin of journey and destination or part thereof are not connected by rail and
the journey is performed between such places, the amount eligible for exemption shall be

i. where a recognised Public Transport system exists, an amount not exceeding the First Class or
Deluxe Class fare, as the case may be, on such transport by the shortest route to the place of
destination and
ii. where no recognised Public Transport system exists, an amount equivalent to the Air-
conditioned First Class rail fare, for the distance of the journey by the shortest route, as if the
journey had been performed by Rail.
Leave Fare Concession

ii. where no recognised Public Transport system exists, an amount equivalent

to the Air-conditioned First Class rail fare, for the distance of the journey by the shortest route, as if
the journey had been performed by Rail.

15.2 For the purpose of this clause. 'Family' in relation to an individual means:
i. The Spouse and Children of the individual and

ii. The parents, brothers and sisters of the individual or any of them wholly or mainly dependent
on the individual.

15.3 It may be noted that under Sub rule (4) to Rule 2-B, after 01.10.98, the exemption is restricted
to two surviving children of the individual. However, this restriction shall not apply in respect of children born
before 01.10.98 and also in case of multiple births after one child.

15.4 The exemption referred to above shall be available to an employee in respect of two journeys
undertaken in a block of four calendar years (The block for this purpose will be, say, 01.01.2006-31.12.2009). Any
amount reimbursed to an employee in excess of the laid down rules should be treated as the income of the employee
and subject to deduction of tax at source. It may also be noted that the amount exempt under this clause shall in no
case exceed the amount of expenses actually incurred for the purpose of Travel.

16. Special Provision to staff posted at Port Blair

16.1 While allowing LFC facility to staff members working in Port Blair branch, time taken to
travel from Port Blair to Mainland and back will be treated as journey time and the distance will not be included for
computing the distance travelled under LFC.

17. LEAVE FARE CONCESSION (LFC) – FOREIGN TRAVEL

17.1 During each block of 4 years, an officer can avail LFC for travel to his Home Town once in
either block of 2 years. Alternatively, he/she may travel in one block of 2 years to his/her Home Town as declared in
his/her service records and in the other block to any place including visit abroad, by the shortest route.

17.2 The Guidelines on Officers / Executives visiting Abroad under LFC were communicated to
branches vide circular no. HRM: 56: 2009-10 dated 10.07.2009. The Revised guidelines effective for journeys
undertaken after the date of circular are furnished hereunder:

 Henceforth, HO:HRM Dept. will be the sole sanctioning authority for sanction of the
LFC (Foreign Travel) bills. (AGM HO:HRM shall be the sanctioning authority for all
officers upto Scale IV and GM (HRM) shall be the sanctioning authority for all
Executives in Scale V, VI and VII).
 Leave Fare Concession

 No TA advance shall be given to the staff members for availing LFC under this
category.

 As hitherto, officers should obtain NOC for Passport / VISA / Visit Abroad from the
concerned sanctioning authority before proceeding on LFC. (Foreign Travel)

17.3 Eligible Fare:

17.3.1 The Eligible fare shall be the “Economy class fare” of Air India for travel between the point of
origin (Boarding Point) and point of destination in India through the shortest route possible or by any non-
stop service fare for one way which will be taken as notional fare and twice this amount will be the overall
eligibility for travel under LFC. Also, transit through/stop over a particular city in India will also be
considered as visiting the place and it is a must.

17.4 Other Terms & Conditions:

17.4.1 While applying for LFC, officers who are desirous of availing LFC to visit abroad should
specifically mention in their leave application, that they intend to visit abroad and they should comply with
the instructions stipulated for foreign LFC.

17.4.2 Further the place of destination in India should also be stated in the leave application.

17.4.3 Officers shall also be reimbursed the eligible fare ( II A.C. / I A.C. train fare as the case may be
) for the distance traveled by the shortest route by any other mode other than by air between the place of
work and the place where he/she boards the plane to visit the destination in India.

17.4.4 Officer and his/her family members have to necessarily touch the same destination (abroad)
while availing LFC to visit abroad. – (Different destination is not permitted)

17.4.5 Officer and his/her dependents can perform journey separately also as per the existing
guidelines.

17.4.6 The commencement of onward journey by all the family members shall be from the place of
work of the officer only. They are not permitted to commence their onward journey from different
destinations.

17.4.7 Branches are advised to forward the LFC bills of the officers, with all related documents like
Boarding Pass, Air ticket Certificate issued by Travel agent, confirmation letter by the officer, copy of leave
sanction, etc., to “Head Office” through the respective Zonal Offices. Please note that the bills sent by the
branches directly to HO:HRM Dept. without the recommendations of Zonal Office will not be considered
for reimbursement and will be returned.

17.4.8 In order to enable the officers to ascertain the exact air fare for a particular date, the Toll Free
Air India Number is : 1800 180 1407.
Leave Fare Concession