CENTRAL OFFICE

CHANDERMUKHI, NARIMAN POINT, MUMBAI 400 021

GENERAL ADMINISTRATION DEPARTMENT

INSTRUCTION CIRCULAR NO. FILE NO. 60 794 DATE: 3RD October 2011 Deptt. Running No. 31

ALL OFFICES SUBJECT : POLICY FOR PROVIDING FURNITURE/FIXTURE AT THE RESIDENCE OF OFFICERS IN SCALE I TO V At present, the Bank has a provision to supply furniture at the residence of the officers. A separate monetary ceiling for each grade/ scale is provided and there exists a list of standard items, out of which the Officer can request for supply of the furniture. The items in the list vary according to the grade/ scale. Under the existing system, an officer has to make a request in writing for supply of furniture and fixtures for his residence. In case the said items are available in the banks godown, the same are made available to him. In the alternative, new items are purchased by the Bank and then supplied. In the event, there always remain a cause of dissatisfaction among the officers over quality of the furniture and also some times over the time it takes for the bank to make the arrangements. The bank is maintaining an inventory of the items that can be supplied to the officers. On transfer or retirement or for any other reason, the officers surrender the furniture so supplied to them. In such an eventuality, in case there is no request pending from any officer, the bank is required to take possession of the same and arrange storage thereof in a godown or some other suitable place, incurring additional heavy cost on transportation. Generally, such places are on hire and involves a heavy rent. In the process, the items of the furniture also get broken and are also sometimes rendered unserviceable, resulting in heavy and avoidable expenditure, as new purchases are then made on receipt of a request from an officer. Moreover, since the ownership remains with the bank and the officer is well aware that he/ she shall use the furniture till the time of his/her posting at that particular station, there never is the feeling of ownership. The usage is accordingly, not proper in many cases. Further, to maintain the service, a large force of manpower is utilized, who not only maintain records of the items of furniture and fixtures so supplied at the residence of officers, but also is busy in providing maintenance and repairs thereof. Price discovery and procuring

items from the market also is sometimes cumbersome and involves a lot of time and man power, which otherwise can be put to better use. With the above in view, the Board of Directors of the Bank, in its meeting held on 29th Sept 2011 has approved the policy for supply of furniture and fixtures to the eligible officers at their residence. The said policy shall come into immediate effect and shall supersede all guidelines/ instructions relating to the supply of furniture & fixtures at the residences of the eligible officers. With implementation of the said policy, all the pending requests from officers in the scale I to V for supply of furniture/ fixtures at their residences shall be deemed to have been withdrawn by the concerned officer. The main merits of the proposed scheme are: 1. The Bank will be absolved of the responsibility of supply, upkeep, storage and maintenance of furniture/fixtures. Consequently, it will save cost by way of rent for storing furniture, transportation cost and cost on maintenance and repairs 2. The bank will save on the manpower resources, 3. The satisfaction level of the Officers will be high because they will purchase the items of their own choice (to be selected from a standard list of items). 4. The life of the furniture will enhance manifold due to optimal and careful use thereof. 5. Insurance shall be the responsibility of the officer concerned and the Bank shall have no role in taking insurance for the said furniture and claiming the loss, if any. Detailed guidelines/ features of the policy are as under: a. The scheme will be applicable to all Officers up to SMGS-V, residing in Banks residence/ leased residence/ residence owned by the Officers and/ or residence taken by the officers on rent.

b. All confirmed officers, including Officers in specialist category in JMGS I to SMGS V, who are governed by the Officers Service Regulations, 1979, as amended from time to time, will be eligible for availing of the facility. Accordingly, officers who have joined the Bank on contract basis will not be eligible for availing of the facility. c. Officers in TEG Scales VI and VII are proposed to continue to be provided with fully furnished accommodation (within their respective entitlements) and shall thus continue to be governed by the existing provisions for the present. However, the norms for purchase of furniture on superannuation presently

applicable to them shall be streamlined and shall be made applicable to all scales as per the new policy. d. The eligible amount of ceiling for supply of furniture at the residence of the officers was last revised in the year 2003. Considering the rise in the prices of furniture items since last review, the ceilings are being revised upwards for all scales, as given in para (i) hereunder. e. Under the scheme, officers will henceforth be allowed to purchase the essential items of furniture/fixtures of their choice within the limits prescribed herein for each grade/ scale from reputed dealer at the place of residential accommodation/ nearest big centre if the residence is at rural and semi urban centre. However, the items to be purchased shall be from the standard list of items permissible by the Bank. The said list is to be revised as per Ann. A enclosed. Further, items, on the basis of their utility, can be approved by an officer not below Scale V (for officers up to Scale IV) and Scale VI, in addition to the revised standard list of items as per Ann A. f. The Officers who have already been provided with the Banks furniture at their residence will not be permitted to surrender the same. However, their entitlement for purchase of furniture/fixtures under the new scheme will be decided by reducing the original cost (original purchase price) of furniture/fixtures which they are holding from the new monetary ceiling fixed for their respective grade in Clause (i) below. The officers in such cases can purchase new items of furniture as per their choice within their residual fresh entitlement. Further, in case some of the items of furniture/fixtures which they are holding are more than 10 years old, the original cost of such items shall be reduced from the aggregate original cost of furniture which they are holding while working out their fresh entitlement. There would also be cases where certain items of furniture are fixed to the wall such as Almirah, shelf etc in the flats owned by the bank. In such cases, all such items shall be deemed to be over and above the entitlement of the concerned officer. Such items shall continue to be in the possession of the bank. g. Once the officer purchases the essential items of furniture/fixtures as per his choice within the overall/ available limit of his entitlement, he will not be permitted to surrender the same to the Bank. He will carry the furniture/fixtures on his transfer to the new place of posting within the eligibility of transportation of household goods and no additional claim for transportation of Banks furniture/fixtures will be entertained. h. At present, the entitlement for supply of furniture at the residence of the Officers varies according to the Centre classification. Also, in Scale I, II and III, there is further classification on account of the officer being a Branch Manager or otherwise. Various area wise ceilings are removed and there will

be only one ceiling for one grade/ scale, as an Officer may move from one centre to another. Also, the distinction within the scale is removed and there shall be one entitlement ceiling for each scale, irrespective whether the officer is working as Branch Manager or otherwise. i. Monetary ceilings for purchase of furniture/fixtures for various grades will be as under :Grade/Scale EXISTING ENTITLEMENT for furniture (excluding items of fixtures) Centre-I Centre-II Centre-III 1.50 1.30 1.10 1.25 1.15 1.00 0.90 0.85 0.80 0.80 0.75 0.70 0.75 0.70 0.65 0.65 0.60 0.55 0.60 0.55 0.50 0.50 0.45 0.40 Revised ceiling including fixtures. 3.50 3.10 2.25 1.80 1.50 JMGS I (Others)

SMGS V SMGS IV MMGS III BM MMGS III (Others) MMGS II BM MMGS II (Others) JMGS I BM

Though the executives in Scale VI and VII are not covered by the scheme, the monetary ceiling for them also is to be revised as under: Grade/Scale EXISTING ENTITLEMENT Revised ceiling, for furniture (excluding items of fixtures) Centre-I Centre-II Centre-III TEG VII TEG VI 2.50 1.75 2.50 1.50 2.50 1.25 3.25 + Fixtures +Curtains 2.40 + Fixtures +Curtains

j. The Officer shall have to opt for the purchase of the furniture items as per the above eligibility within 30 days from the date of the relevant circular. Piecemeal purchases/ advance shall not be allowed. k. No repairs of the furniture/fixtures, minor or major, will be undertaken by the Bank. The Officers will be eligible for annual reimbursement of expenses equivalent to 5% of the total value of furniture/ fixtures allowed (rounded off to the nearest 1000 rupees) on account of repairs, insurance (including transit insurance, whenever furniture/fixtures are required to be transported for any reason) etc. However, no reimbursement of this amount will be made within one year from the purchase of new furniture and the officer will have to arrange for the repairs/insurance at his own cost during that period. Nevertheless, considering the fact that the officers presently are already having the furniture, which might be old and might require repairs/ polishing,

furniture which is one or more years old, reimbursement at the above rate will be admissible, on the original cost price of such furniture. In case of any loss for whatever reason, the officer shall have no claim towards the Bank and he himself shall be responsible for claim from the Insurance Co. l. The eligibility for such amount shall be reckoned on 31st March of the relevant financial year of purchase. The officers will have to claim this amount every year from 1st May to 30th June and no carryover of such claim to the next year will be permitted. On promotion, any officer may become eligible for higher ceiling for purchase of furniture/fixtures. In such an eventuality, he may purchase the additional items of furniture within the ceiling prescribed for his new grade and claim that additional amount from the Bank. However, if an officer continues to remain in the same grade and the entitlement of that grade is enhanced for any reason whatsoever, he will not be entitled to claim the enhanced amount. m. Where both husband and wife are employees of our Bank, either of them can avail of the facility. n. After purchasing the furniture/fixtures from reputed dealer, the officers will have to use the same for 10 years. Thereafter the ownership of the furniture/fixtures will be transferred to the Officers. They would be eligible for availing of the facility again subject to the condition that their eligible amount for this purpose shall be reduced by the residual book value of the furniture/fixtures supplied last time. However, the facility will be available to an officer for maximum of three times in the entire service. If the officer is promoted to TEGS VI at any stage, this facility of reimbursement at the cost of essential furniture/fixtures will not be available to him thereafter and his entitlement for physical supply of furniture/fixture in his new scale of TEGS VI will be reduced by the book value of the furniture/fixtures provided to him when he was SMGS-V Officer.

o. An Officer eligible for supply of furniture, shall give an application for purchase of furniture and fixture as per the specimen placed at Annexure B. The Officer will then be paid the amount as per his entitlement by debit to Nominal A/c titled ADVANCE FOR PURCHASE OF RESIDENTIAL FURNITURE. Thereafter, within 30 days, the Officer shall have to give a certificate to the Bank on a standard format (annexure C) enclosing therewith the cash memo (s)/receipted challans (s) indicating the purchase and delivery of those items. On receipt of this certificate, the advance given to him earlier will be adjusted by debit to Banks OFF Account. A copy of this certificate and the enclosed list/cash memo (s)/receipted challans (s) will be kept in his service file also and the date of purchase and the amount of the items shall be

recorded in his name. If the officer does not buy the furniture/fixtures within 30 days from the date of advance taken by him for this purpose, it will be deemed that he has misutilised the fund and the amount will be recoverable from him together with interest at the prevalent rate for clean overdraft and the officer will not be given the benefit of this facility in his entire service. However, an officer not below Scale VI, may at his discretion, considering the extra-ordinary circumstances narrated by the officer, allow reasonable extension of time to purchase the items of furniture for which advance had been allowed. p. The officer shall not be eligible for supply of any furniture for 10 years, unless he gets promoted to higher scale, from the date of operation of the scheme or the date on which the facility is availed under this scheme by him. q. Furniture purchased by an Officer will be verified by the Branch Manager/Designated officer and a certificate to that effect will be kept on record at the branch/office. r. The furniture/fixtures, provided at the officers residences under the scheme, will be Banks property till the time the ownership is transferred to the officer being 10 years old, as envisaged under para ( ) herein. s. The officers shall not let out or otherwise part with the possession of the furniture/fixtures to any one in whole or in part till the time the ownership thereof is transferred in their names. t. Once the officer has been paid the amount for purchase of furniture/fixtures from the next month onward, 0.25% of the pay in the first stage of the scale of pay in which the officer is placed will be recovered from his monthly salary towards the rent. u. As on 1st March every year, every Officer shall submit the possession certificate (Annexure D) to the branch/office where he is posted. v. On transfer of an Officer, the book value of furniture/fixtures provided to him will be debited to the transferee branch/office and the amount of reimbursement for furniture/fixtures and the date of reimbursement will be mentioned in the Leave cum salary particulars. w. At the time of retirement/voluntary retirement /removal/dismissal of the officer. If an officer has put in more than five years of service from the date of purchase of/ reimbursement for furniture/fixtures, no recovery shall be made from him and the ownership of Banks furniture/fixtures will be transferred to him. However, if an Officer is retired/voluntarily retired/removed/dismissed

from the service within 5 years from the date of purchase/ reimbursement for furniture/fixtures, the book value of the furniture/fixtures will be recovered from his terminal dues. For any reason if the recovery could not be affected from the terminal dues, the same shall be made good by the officer concerned. In the event of failure to do so, the items of furniture will have to be returned back to the bank. However, in the unfortunate event of death of the official while in service, the family of the deceased officer will be given the furniture/fixtures already purchased by that officer free of cost and the book value of the same will be written off from Banks records, irrespective of the period of purchase of the furniture. The new scheme of providing furniture/fixtures will come in force and the old scheme for this purpose shall stand withdrawn with immediate effect for Officers in SMGS-V and below. Please take a careful note of the above.

( A K Agarwal) Dy General Manager (GAD)

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ANNEXURE - A SR EXISTING LIST OF ITEMS allowable to officers w.e.f. NO. 1.7.2003 1. Single/Double wooden cots with Dunlop/Coir mattress & pillows 2. Dressing table with settee. SR N O. 1 2. REVISED LIST OF ITEMS (Changes/Additions have been given in bold) Single/Double wooden cots with Dunlop/Coir mattress & pillows Dressing table with settee. Reading/writing tables with/without drawer on both the sides with chairs. Table lamps. Storewells (almirahs) Trolleys. Sofa sets with centre table Dining table and chairs. Chairs (cane/metal/wooden with/without arms and folding/no folding). Diwan Computer table with chairs. Inverter Bookshelves (fixed to wall or otherwise) Sideboard in Kitchen (fixed to wall or otherwise) Air coolers Floor carpet (standard sizes). Microwave oven. Washing machine All items shall now be available to all officers

tables 3. 3. Reading/writing with/without drawer on both the sides with chairs. 4. 4. Table lamps 5. Storewells (almirahs) 6. Trolleys. 5. 6.

7. Sofa sets (of 3 pieces each) with 7. main center tea-poys. 8. 8. Dining table and chairs (cane/metal/wooden 9. 9. Chairs with/without arms and folding/no folding). 10. 10. Diwan 11. Computer table with chairs 12. Inverter. 13. Bookshelves (not fixed to wall) 11. 12. 13.

14. Sideboard in Kitchen (not fixed 14. to wall) 15. Air cooler (where temperature in 15. the summer is normally 104 F) 16. 16. Floor carpet (standard sizes). 17. Microwave oven 18. Washing machine. 17. 18.

Extra items allowable to certain category of eligible Officers over and above the cost ceilings prescribed to their respective Scale Scale IV and above: 19 19. One Air Conditioner (window) Scale III and above 20 21

Air Conditioners Refrigerator Ceiling fans

20. One Refrigerator 21. Ceiling fans 22. Water Purifier 23. Exhaust fans 24. Electric Geyser 25. Bookshelves (if fixed to wall)

22 23 24 25 26 27

Water Purifier Exhaust fans Electric Geyser Telephone stand LCD TV Gas Stove/ Cooking range Electric Chimney Food Processor Vacuum Cleaner

26. Sideboards in the kitchen (if 28 fixed to walls) 27. Telephone stand (if fixed to 29 wall) 30

Or any other item as may be deemed fit and permitted by an Officer not below Scale V (for officers up to scale IV) and Scale VI.

ANNEXURE B (To be given in duplicate) Date : Place : To, Branch Manager, Central Bank of India, ___________________, Dear Sir, Reg: ADVANCE FOR PURCHASE OF BANKS FURNITURE/ FIXTURES FOR USE AT MY RESIDENCE In terms of circular no.____________________________dated________, please grant me an advance of Rs. ____________(Rupees___________________________________________) equivalent to my entitlement for purchase of furniture/fixture on Banks behalf for my own use at my residence. In this connection, I submit as under : i. I have been staying/ allotted Banks accommodation/leased accommodation/ my own house/ rented house, the postal address of which is as under : _________________________________ _________________________________ _________________________________ I have been permitted to retain my family in my owned house/leased house at ____________________ vide letter No. _________________________________ dated _________________ (copy enclosed). I have been provided with Banks furniture/fixtures, the original cost of which (excluding the items which are more than 10 years old) is Rs.____________. I undertake to purchase the items of furniture/fixtures of my choice from reputed vendors/companies etc. for the residual amount (Rs._______________) of my entitlement for this purpose from the prescribed standard list of items. I undertake to give certificate within 30 days from the date of advance taken to the Bank in confirmation of having purchased the furniture/fixtures together

ii.

iii.

iv.

v.

with a list containing the particulars of each item, viz. the name of the item, price etc. together with the relative cash memo(s)/receipted challans(s). vi. I understand that if I do not purchase the furniture within 30 days from the date of advance being given to me for this purpose, it will be deemed that I have misutilised the fund and the amount will be recovered from my salary together with interest at the prevalent rate for clean overdraft and I shall not be given the benefit of this facility (scheme) in my entire service. I undertake to obtain insurance cover (including transit insurance whenever Banks furniture/fixtures are required to be transported for any reason whatsoever) for the book value of the furniture/fixtures in the name of the Bank at my own cost in first year and from the amount payable to me towards insurance and repairs of furniture every year thereafter. The policy issued by the insurance company will be kept with me. As I shall myself be insuring the furniture/fixtures provided to me by the Bank, in case of any loss of any kind, it will be my responsibility to get the amount of claim from insurance company and I shall not raise any claim with the Bank to replenish the loss. I understand that if I do not purchase the furniture and fixtures and submit a false certificate regarding purchases made, I shall be liable to be proceeded against under the relevant service rules.

vii.

viii.

Yours faithfully,

( Name Designation Employee no. : : :

ANNEXURE C

Date : Place : To, Branch Manager, Central Bank of India, ___________________, Dear Sir, PURCHASE OF BANKS FURNITURE/FIXTURES FOR MY RESIDENTIAL ACCOMMODATION Please refer to my application dated __________ on the basis of which I was granted an advance of Rs.______________(Rupees______________________________________________ _ only) for purchase of furniture of my choice for my residential accommodation. The statement giving details thereof is enclosed together with the cash memo(s)/receipted challans (s). I acknowledge that the furniture/fixtures purchased by me are Banks property which I shall possess and take good care of as a bailee. 2. I have obtained insurance cover for the book value of Banks furniture/fixtures in Banks name and the insurance policy is in my possession. I shall always keep these Banks furniture/fixtures insured for the Book Value in future also. In case of loss of any kind, it will be my responsibility to obtain the amount of claim from the insurance company and whether the insurance claim is paid or not paid at all, I shall not make any claim with the Bank for any replenishment of the loss. 3. I know that the furniture/fixtures provided to me by the Bank shall remain with me for at least 10 (ten) years and I shall have to carry them wherever I am transferred within my eligibility for transportation of household goods on transfer. I shall not make any additional claim separately for transportation of Banks furniture/fixture provided to me for my residential use. 4. I also know that I shall not get any additional reimbursement for a purchase of any furniture/fixtures for my residential use within 10 (ten) years from the date of purchase i.e. _____________ (date), except when my entitlement increases on account of my promotion. Even if there is any upward revision in future, in the entitlement for my present grade, I shall not be eligible to claim the difference

between such enhanced entitlement and my present entitlement, if I continue to remain in the same grade. 5. In case of my retirement/voluntary retirement/removal/discharge/dismissal from service within 5 years from the date of purchase of Bank/s furniture/fixtures, I hereby give irrevocable authority to the Bank to recover from my terminal dues the book value of Banks furniture/fixtures provided to me in lieu of transferring the ownership of such furniture/fixtures to me. In the event of any shortfall, I undertake to make good the said amount. Yours faithfully,

( Name Designation Employee no. : : :

FOR OFFICE USE

Certified that I have visited the residence of Shri/Smt __________________________ on ___________ and verified the purchase of furniture and fixtures as per the list and found it in order.

_____________________________________ BRANCH MANAGER/DESIGNATED OFFICER (Name: Date:

ANNEXURE D Date : Place : To, Branch Manager, Central Bank of India, ___________________, Dear Sir, ANNUAL POSSESSION CERTIFICATE

I hereby certify that Banks furniture/fixtures worth the original cost of Rs.____________ (Rupees ________________________________only), purchased on ____________ (date of purchase) remain in my possession. All the items are insured for the book value and the insurance cover is valid. ________________________________ _________________________________ No.:___________________ Grade/Scale ___________________ Residential address where the Banks furniture/fixtures placed. ______________________________________ _____________________________________ ______________________________________ are : Signature Name Employee

FOR OFFICE USE 1. Tallied with office record : Rs.________________________ 2. Original cost of the furniture : Rs.________________________ st 3. Notional Book value as on 1 April : Rs.________________________ (i.e. beginning of the year) 4. Notional Book value as on 31st March __________ : Rs.________________________ Signatures of BM/ Designated Officer SIGNATORY