NRB issuing guidelines on BFI staff salary by mid-April

KATHMANDU, Jan 15:

In a bid to control ´exploitation´ of lower rung employees at banks and financial institutions (BFIs), Nepal Rastra Bank (NRB) is coming up with a guideline on salary of staff members of BFIs by mid-April.

After the enforcement of the new guideline, a junior-level staff at BFI will draw a minimum monthly salary of Rs 14,000, equivalent to the monthly pay of lower level staff in government offices.

“The NRB is introducing the guidelines as we have been hearing grievances from junior level staff members of BFIs regarding their pay. They have been complaining that they were underpaid as compared to their counterparts in the government offices,” the source, who is a high level official at the NRB, told Republica. “The unjustifiable and huge gap between the salary of senior level and the lower level staff in the BFIs is brewing discontent among the latter in the BFIs.”

The official said the new guideline will also help create uniformity in financial and administrative bylaws of all BFIs.
Earlier in 2008, the NRB had introduced similar guidelines on pay and perks for the CEO of the BFIs.

“After authorizing BFIs to mobilize money from general public, the NRB checks every dimension of those BFIs. Human management and administration also plays a vital role in the success and failure of the banks, so we are introducing the guideline on salary to avert any banking misfortunes,” the source added.
At present, BFIs are paying salary ranging from Rs 7,000 to Rs 15,000, including allowances, to their lower-level staff.

The source told Republica that the guideline will require BFIs to introduce three levels -- lower, clerical and officer - for their employees like in civil administration.

According to the source, the lower level staffs will include peon, messengers and other support staff. Similarly, assistants, junior assistants and supervisors fall under the clerical level. Other officers, managers and CEO will be on the officer level.

The source said the new guideline will also have provisions on additional payment for overtime works.

Source: Republica