General Disciplinary Actions Taken By Firm: While disciplining an employee, it is always important to make sure that the disciplinary

action meted out to the offender is always commensurate to the offence committed. Like earlier said too, it is important to mete out the same punishment to the same category of offenders. Another important thing in punishing offenders is that the person must be given the opportunity to be heard. He must explain reasons for his action before a decision is taken against him. Certain mild offences should also be punished with mild penalties. Some disciplinary actions in firms include; Oral warning; when an offence is not that serious or when an offender is a first offender, he can be given oral warning. The human resources person invites him, talks to him, cautions him and warns him to desist from such actions in the future. Written warning: When the offence committed by the employee is not an offence that you can just warn him verbally and let him go, he is issued a query. He replies the query and explains reasons for his action. The query and his response are filed in the staff file for future references. After considering his response, a written warning also is issued to him and a copy of the warning letter also documented in the staff file. Loss of entitlement: Some indiscipline is cautioned by denying the offender his or her entitlement as a reprimand for the action. In some cases, the offender may not be paid any allowance or bonus due to him to punish him for an offence or indiscipline committed. Suspension: If an offence is strong, they employee may be suspended without pay. Depending on the level of offence the suspension may take up to two months or more without pay. Demotion: A staff can be demoted from his position because of indiscipline. If a manager for instance keeps on coming to work late, how will he lead and control his subordinates? The best thing is to demote him if he has been advised about it and he fells to change. Termination of appointment: When an employee commits an offence that the company cannot condone, his appointment may be terminated. Dismissal: This is the strongest action that can be carried out on an offender. When an employee gets involved in fraud, stealing, illegal business etc the firm may have no other option left than to dismiss him out rightly. Disciplinary action is always carried out in sequence. For instance if one is a first offender, and the offence is not so bad, he can be warned verbally. Then if he commits another offence, he is queried and probably suspended from duty without pay. If another offence is committed by the

same staff, his appointment may be terminated. On the other hand when a staff commits a grievous offence like fraud, the punishment is summary dismissal

MECHANISM FOR DETERMINING VIGILANCE ANGLE The guidelines of the CVC envisage that each bank will set up an Internal Advisory Committee (IAC) of 3 members (preferably at the level of GMs but not below the rank of Dy. General Managers) to scrutinize the complaints received in the bank and also the cases arising out of inspections, audits etc. for determination of existence of the vigilance angle or otherwise in specific transactions. In our bank, the Inspection & Audit Division, HO is the nodal division for placing the cases before the IAC. The process for determination of vigilance overtone in the role of any official corresponding to any actionable lapse comprises of the following stages :

The Circle Office / Division where cause of action have occurred refer the matter of all the erring officials to Internal Advisory Committee (IAC) to examine existence of vigilance overtone. The IAC independently examines the role of the officials for determining as to whether vigilance overtone exists there or not, on the basis of the information provided by the Circle Office / Division where cause of action have occurred. The views of the IAC on the existence of vigilance overtone or otherwise in the role of any official are then sent to the Chief Vigilance Officer, who examines the same afresh and conveys his views to the Disciplinary Authority. After receiving the views of CVO, the Disciplinary Authority examine the matter and form his independent views on existence of vigilance overtone and send his views to CVO. In case there is a difference of opinion between the CVO and the Disciplinary Authority regarding determination of existence of vigilance overtone, the issue should be initially referred to the CMD of the Bank through CVO for resolution of the difference in respect of the officials not falling within the purview of the Commission. If the difference still persists the same may be referred to the Commission for a final view. However, such issues be referred to the Commission in respect of the officials coming under the jurisdiction of the Commission (Scale V & above). In case the vigilance overtone is perceived by the DA in agreement with the CVO (whether initially or after reconsideration), a vigilance case is registered at the Vigilance Department and where vigilance overtone is not perceived by the DA in agreement with the CVO, further action is initiated against the officials in a manner deemed appropriate

by the DA / the Administrative Authority under non vigilance category. The following points are also required to be kept in view by the DA: Since the vigilance overtone is examined in the role of the officials corresponding to the actionable lapses, no reference is required to be made to the IAC or to the Vigilance Department, in cases where it is beyond doubt, that the concerned official is found to have played no role in the given actionable lapse or there is no actionable lapse in his role. The actionable lapses of extreme vigilance nature like forgery, misappropriation, etc. and of extreme non vigilance nature like unauthorized absence, riotous behaviour, etc. are not required to be referred to IAC but these cases are to be referred to the Vigilance Department, HO directly. The cases of officials due for retirement should be sent well in time to I & A Divn., HO for placing before Internal Advisory Committee to ensure timely disposal of these cases. While referring the cases to IAC for determination of vigilance overtone a self contained note containing all aspects of the case, specific roles played by the respective officials, deviations resorted by them, amount involved, amount of the security available, apprehended loss, etc. are to be furnished by the Disciplinary Authority.

2 Some specific recommendations in a few critical areas are given below:Critical Areas Control Measures A. D.D.s issued - DDs should be punched, pasted (Cellotape) and perforated to avoid chemical alteration. - DDs issued should invariably be made payable in favour of Bank A/c, Beneficiary and A/c No., at least in cases of DDs above Rs.10,000/-. - Different Draft books to be used for different denominations. - Authorised signatories should affix their rubber stamps.

B.Collection instruments

- Date of the instrument should normally not be prior to the date of opening of the A/c.

- In newly opened A/cs laid down procedures have to be strictly followed viz., obtaining photographs, proper introduction, sending letter of thanks to both, monitoring of account for at least six months, precautions while permitting large credits/debits etc. specially cash withdrawals. - All cheques/DDs presented for collection must be crossed and accepted at the counter by a supervisory staff. - No third party cheques/DDs should be collected unless the customer is of good standing, integrity, and the account is properly introduced and maintained.

C.Deposit A/Cs particularly SB A/Cs

- Besides, no duplicate Pass Book, Cheque Book or loose cheque leaf should be issued except to the customer personally and that too after identifying him. - The first ledger folio of accounts of new customers should be affixed with a label/rubber stamp to read New Account- Caution. This will help the ledger keeper to report any unusual/suspicious transactions. Such precaution to be recorded in computerized working as well.

D. Advances including Exports/Large Scale Advances/ SSI/Trade

- Substantial diversion of funds should be treated as a financial crime under the definition of frauds. - Restriction on cash disbursement. - Check on transactions- Cash Payment, cheque payment. These should be related to the trade/ business in which the party is engaged. - Antecedents of borrower and promoters should be verified properly during presanction exercise - Coordination with various other agencies viz.Custom Deptt., RBI, ECGC etc. - Avoid double financing - In case of mortgage of immovable property care to be exercised about legal title, valuation and realisation

- Excessive dependence on Chartered Accountants to be avoided. - Acceptance of unrealistic projection to be avoided (sales/turnover projection) Agriculture - Middlemen to be eliminated - Check/strict vigil on subsidy oriented schemes

E. Lost/Stolen/Missing Stationery/ Security Items like DD books, cheque books, deposit Receipts etc.

- Scrutinize all the security items received from printers and confirm its correctness, proper recording of such items in the relevant registers/books, authentication by the authorised officials and in case of any discrepancy in the indent placed and quantity supplied, the same should be brought to the notice of Branch Manager/ Controlling Office. - All security items like cheque books/Demand Draft Books/Deposit Receipts Books/Mail Transfer Books/Cash Vouchers/Withdrawals etc. should remain under lock and key, under dual control of authorised officials - Whenever any item is taken out for day-to-day use, the date when such item is issued out for use, the quantity issued should be recorded in the relevant registers/books. Acknowledgement of the official to whom the item is delivered is to be obtained. The security items issued for day to day use should be under the control of the Officer-in-Charge of the Department. Opening stock, instruments utilised during the day and closing stock of security items should be ensured daily. Under no circumstances the security items should be left open at the counters unattended. - The Branches should undertake physical verification of stock of security items on quarterly basis and send the certificate the immediate controlling office. Controlling head should ensure that these certificates are obtained from all the branches under their jurisdiction.

11. Reporting of fraud to RBI, Police and CBI

11.1

11.2 The Sub Group, however, felt that a distinction should be made for reporting the cases to police and the CBI and the time limit should be different for the two. Normally the simple cases of frauds not exceeding Rs. 25 lacs are reported to the police by the concerned Branch Manager as per CVC guidelines irrespective of the involvement of a Public Servant.

11.3 The cases to be filed with CBI require approval of the Managing Director of the respective Bank and also calls for detailed investigation of the case by the banks own officials to prima facie determine the criminal intent either on the part of outsiders or internal staff. In some of the cases where records are destroyed and evidences tampered with it takes some time to reconstruct records to quantify the loss and to identify the persons who might have committed the fraud.

11.4 The Group accordingly suggests that the cases of fraud should be reported to CBI within a maximum period of 30 days on the basis of preliminary investigation report to be followed by a detailed report after due investigation. Lodgement of FIR with the local police should be done within 2/3 days from date of detection of the fraud.

12. Disciplinary Action Delays : Causes and Suggestions

The delay in staff action is attributed to the following reasons:-

12.1 Investigation

- Delay in conducting investigation

- Vague investigation report not helping the Disciplinary Authority to crystalise his further course of action - Names, designation and period of stay at the unit of the staff/official concerned not mentioned properly - The extenuating circumstances prevalent at the branch not properly incorporated - Inadequate job knowledge with the Investigating Officer - Thorough and prompt scrutiny of Investigation Report not done at the level of Disciplinary Authority - Undue delay in calling for explanation and submission of explanation by the suspected employees/officials. - Delay in seeking first stage advice, framing of charge sheet, appointment of Inquiry Officer/Presenting Officer, conduct of enquiry and submission of enquiry report - Delay in scrutiny of enquiry report and seeking of second stage advice - Delay in passing speaking order

12.2 Suggestions

Punjab National Bank Officer Employees (Discipline & Appeal) Regulations, 1977 In exercise of the powers conferred by Section 19 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), the Board of Directors of Punjab National Bank in consultation with the Reserve Bank of India and with previous sanction of the Central Government hereby makes the following regulations namely:Short title and commencement (Regulation 1) These regulations may be called Punjab National Bank Officer Employees'(Discipline and Appeal) Regulations, 1977 They shall come into force on 1-1-1977 Application (Regulation 2) These regulations shall apply to all officer employees of the Bank, but shall not apply toThe Chairman of the bank; The Managing Director of the bank;

Any whole time Director, if any; Those who are in casual employment or paid from contingencies; The award staff; and The officers on contract. Definitions (Regulation 3) In these regulations, unless the context otherwise requires: Act: means the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970(5 of 1970); Appellate authority: means the authority specified in the Schedule to dispose of appeals; Award Staff: means the person covered by the Award as defined in the Industrial Disputes (Banking Companies) Decision Act, 195 (41 of 1955); Bank: means Punjab National Bank; Board: means the Board of Directors of the Bank; Competent Authority: means the authority appointed by the Board for the purpose of these regulations; Disciplinary Authority: means the authority specified in the schedule which is competent to impose on an officer employee any of the penalties specified in regulation 4; Government: means the Central Government; Managing Director: means the Managing Director of the bank; officer employee: means a person who holds a supervisory or managerial post in the bank or any other person who has been appointed and functioning as an officer of the bank, by whatever designations called and includes a person whose services are temporarily placed at the disposal of the Central Government or a State Government or any other Government undertaking or any other public sector bank or the Reserve Bank of India or any other organization, but shall not include casual, work charged or the award staff public financial institutions meanThe Industrial Credit and Investment Corporation of India Limited, a company owned and registered under the Companies Act, 1956(1 of 1956); The Industrial Finance Corporation of India, established under section 3 of the Industrial Finance Corporation Act, 1948 (15 of 1948); The Industrial Development Bank of India, established under Section 3 of the Industrial Development Bank of India Act, 1964 (18 of 1964) The Life Insurance Corporation of India, established under Section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956); The Unit Trust of India, established under section 3 of the Unit Trust of India Act, 1963 (52 of 1963); Any other financial institution which is declared by the Central Government by notification to be a public financial institution; Public Servant means- a personas defined as Public Servant in Section 21 of the Indian Penal

Code (45 of 1860); Reviewing Authority means the authority specified in the Schedule; Schedule means the Schedule appended to these regulations. 4. Penalties The following are the penalties which may be imposed on an officer employee, for acts of misconduct or for any other good and sufficient reasons. Minor Penalties y y y y Censure; Withholding of increments of pay with or without cumulative effect; Withholding of promotion; Recovery from pay or such other amount as may be due to him of the whole or part of any pecuniary loss caused to the bank by negligence or breach of orders.

Major Penalties y y y y y reduction to a lower grade or post, or to a lower stage in a time scale; compulsory retirement; removal from service which shall not be a disqualification for future employment; dismissal which shall ordinarily be a disqualification for future employment. Explanation: The following shall not amount to a penalty within the meaning of this regulation:y withholding of one or more increments of an officer employee on account of his failure to pass a prescribed departmental test or examination in accordance with the terms of appointment to the post which he holds; y Stoppage of pay of an officer employee at the efficiency bar in a time scale, on the ground of his unfitness to cross the bar; y non-promotion, whether in an officiating capacity or otherwise, of an officer employee, to a higher grade or post for which he may be eligible for consideration but for which he is found unsuitable after consideration of his case; y reversion to a lower grade or post, of an officer employee officiating in a higher grade or post, on the ground that he is considered, after trial, to be unsuitable for such higher grade or post, or on administrative grounds unconnected with his conduct; y reversion to his previous grade or post, of an officer employee appointed on probation to another grade or post, during or at the end of the period of probation, in accordance with the terms of his appointment or rules or orders governing such probation; y reversion of an officer employee to his parent organisation in case he has come on deputation; y Termination of service of an officer employee appointed on probation, during or at the end of the period of probation, in accordance with the terms of his appointment, or the rules or orders governing such probation;  of an officer employee appointed in a temporary capacity otherwise than under a contract or agreement, on the expiration of the period for which he was appointed, or earlier in accordance with the terms of his appointment;  of an officer employee appointed under a contract or agreement, in accordance with the

y y y

terms of such contract or agreement, and of an officer employee on abolition of post; Retirement of an officer employee on his attaining the age of superannuation in accordance with the rules and orders governing such superannuation; Termination of employment of a permanent officer employee by giving 3 months notice or on payment of 3 months pay and allowances in lieu of notice. Termination of employment of an officer employee on medical grounds, if he is declared unfit to continue in bank's service by the bank's medical officer.

Authority to Institute Disciplinary Proceeding and Impose Penalties (rule 5) The Managing Director or any other authority empowered by him by general or special order may institute or direct the Disciplinary Authority to institute disciplinary proceedings against an officer employee of the bank The Disciplinary Authority may himself institute disciplinary proceedings. The Disciplinary Authority or any authority higher than it, may impose any of the penalties specified in Regulation 4 on any officer employee.

Procedure for Imposing Major Penalties No order imposing any of the major penalties specified in clauses (f), (g), (h), (i) and (j) of Regulation 4 shall be made except after an enquiry is held in accordance with this regulation. Whenever the Disciplinary Authority is of the opinion that there are grounds for inquiring into the truth of any imputation of misconduct or misbehavior against an officer employee, it may itself enquire into, or appoint any other person who is, or has been, a public servant (hereinafter referred to as the inquiring authority) to inquire into the truth thereof. Explanation: When the Disciplinary Authority itself holds the inquiry any reference in subregulation (8) to sub- regulation (21) to the inquiring authority shall be construed as a reference to Disciplinary Authority. Where it is proposed to hold an inquiry, the Disciplinary Authority shall, frame definite and distinct charges on the basis of the allegations against the officer employee and the articles of charge, together with a statement of the allegations, list of documents relied on along with copy of such documents and list of witnesses along with copy of statement of witnesses, if any, on which they are based, shall be communicated in writing to the officer employee, who shall be required to submit, within such time as may be specified by the Disciplinary Authority (not exceeding 15 days), or within such extended time as may be granted by the said Authority, a written statement of his defense; Provided that wherever it is not possible to furnish the copies of documents, disciplinary authority shall allow the officer employee inspection of such documents within a time specified in this behalf; On receipt of the written statement of the officer employee, or if no such statement is received within the time specified, an enquiry may be held by the Disciplinary Authority itself, or if it considers it necessary so to do appoint under Sub-regulation (2) an Inquiring Authority for the purpose.

Provided that it may not be necessary to hold an enquiry in respect of the articles of charge admitted by the officer employee in his written statement but shall be necessary to record its findings on each such charge. The Disciplinary Authority shall, where it is not the inquiring authority, forward to the inquiring authority:  A copy of the articles of charges and statements of imputations of misconduct or misbehavior;  A copy of the written statement of defense, if any, submitted by the officer employee;  A list of documents by which and list of witnesses by whom the articles of charge are proposed to be substantiated;  A copy of statements of the witnesses, if any; evidence proving the delivery of the articles of charge under sub-regulation (3);  A copy of the order appointing the 'presenting officer' in terms of sub-regulation (6). Where the Disciplinary Authority itself enquires or appoints an inquiring authority for holding an inquiry, it may, by an order, appoint a public servant to be known as the 'Presenting Officer' to present on its behalf the case in support of the articles of charge. The officer employee may take the assistance of any other officer employee but may not engage a legal practitioner for the purpose, unless the presenting officer, appointed by the Disciplinary Authority is a legal practitioner or the Disciplinary Authority, having regard to the circumstances of the case so permits. NOTE: The officer employee shall not take the assistance of any other officer employee who has two pending disciplinary cases on hand in which he has to give assistance. The Inquiring Authority shall by notice in writing specify the day on which the officer employee shall appear in person before the inquiring authority. On the date fixed by the Inquiring Authority, the officer employee shall appear before the Inquiring Authority at the time, place and date specified in the notice. The Inquiring Authority shall ask the officer employee whether he pleads guilty or has any defense to make and if he pleads guilty to any of the articles of charge, the Inquiring Authority shall record the plea, sign the record and obtain the signature of the officer employee concerned thereon. The Inquiring Authority shall return a finding of guilt in respect of those articles of charge to which the officer employee concerned pleads guilty. If the officer employee does not plead guilty, the Inquiring Authority shall adjourn the case to a later date not exceeding 30 days or within such extended time as may be granted by the Inquiring Authority. The Inquiring Authority while adjourning the case as in sub-regulation (9), shall also record by an order that the officer employee may for the purpose of preparing defense complete inspection of the documents as in the list furnished to him immediately and in any case not exceeding 5 days from the date of such order if he had not done so earlier as provided for in the proviso to sub-regulation (3); submit a list of documents and witnesses, that he wants for the inquiry; give notice within ten days of the order or within such further time not exceeding ten days as the Inquiring Authority may allow for the discovery or production of the documents

referred to in item (ii). NOTE: The relevancy of the documents and the examination of the witnesses referred shall be given by the officer employee concerned. The Inquiring Authority shall, on receipt of the notice for the discovery or production of the documents, forward the same or copies thereof to the authority in whose custody or possession the documents are kept with a requisition for the production of the documents, on such date as may be specified. On receipt of the requisition under sub-regulation (11), the authority having the custody or possession of the requisitioned documents, shall arrange to produce the same before the Inquiring Authority on the date, place and time specified in the requisition. Provided that the authority having the custody or possession of requisitioned documents may claim privilege if the production of such documents will be against the public interest or the interest of the bank. In that event, it shall inform the Inquiring Authority accordingly. On the date fixed for the inquiry, the oral and documentary evidence by which the articles of charge are proposed to be proved shall be produced by or on behalf of the Disciplinary Authority. The witnesses produced by the Presenting Officer shall be examined by the Presenting Officer and may be cross-examined by or on behalf of the officer employee. The Presenting Officer shall be entitled to re-examine his witnesses on any points on which they have been cross examined, but not on a new matter, without the leave of the Inquiring Authority. The Inquiring Authority may also put such questions to the witnesses as it thinks fit. Before the close of the case, in support of the charges, the Inquiring Authority may, in its discretion, allow the Presenting Officer to produce evidence not included in the charge sheet or may it call for new evidence or recall or re-examine any witness. In such case the office employee shall be given opportunity to inspect the documentary evidence before it is taken on record, or to cross-examine a witness, who has been so summoned. The Inquiring Authority may also allow the officer employee to produce new evidence, if it is of the opinion that the production of such evidence is necessary in the interests of justice. When the case in support of the charges is closed, the officer employee may be required to state his defense, orally or in writing, as he may prefer. If the defense is made orally it shall be recorded and the officer employee shall be required to sign the record. In either case a copy of the statement of defense shall be given to the Presenting Officer, if any, appointed. The evidence on behalf of the officer employee shall then be produced. The officer employee may examine himself in his own behalf, if he so prefers. The witnesses produced by the officer employee shall then be examined by the officer employee and may be cross-examined by the Presenting Officer. The officer employee shall be entitled to re-examine any of his witnesses on any points on which they have been cross-examined, but on any new matter without the leave of the Inquiring Authority. The Inquiring Authority may, after the officer employee closes his evidence, and shall, if the officer employee has not got himself examined generally question him on the circumstances appearing against him in the evidence for the purpose of enabling the officer employee to explain any circumstances appearing in the evidence against him. The Inquiring Authority may, after the completion of the production of evidence, hear the Presenting Officer, if any appointed, and the officer employee or permit them to file written

briefs of their respective cases within 15 days of the date of completion of the production of evidence, if they so desire. "If the officer employee does not submit the written statement of defense referred to in subregulation (3) on or before the date specified for the purpose or does not appear in person, or through the assisting officer or otherwise fails or refuses to comply with any of the provisions of these regulations, the inquiring authority may hold the inquiry ex-parte. Whenever any Inquiring Authority, after having heard and recorded the whole or any part of the evidence in an inquiry ceases to exercise jurisdiction therein, and is succeeded by another Inquiring Authority which has, and which exercises, such jurisdiction, the Inquiring Authority so succeeding may act on the evidence so recorded by its predecessor, or partly recorded by its predecessor, and partly recorded by itself; Provided that if the succeeding Inquiring Authority is of the opinion that further examination of any of the witnesses whose evidence has already been recorded is necessary in the interest of justice it may recall, examine, cross-examine and re-examine any such witnesses as herein before provided. On the conclusion of the inquiry, the Inquiring Authority shall prepare a report which shall contain the following: y y y y a gist of the articles of charge and the statement of imputations of misconduct or misbehavior; a gist of the defense of the officer employee in respect of each article of charge; an assessment of the evidence in respect of each article of charge; the findings on each article of charge and the reasons therefore.

Explanation - If, in the opinion of the Inquiring Authority, the proceedings of the inquiry establish any article of charge different from the original article of charge, it may record its findings on such article of charge; Provided that the findings on such article of charge shall not be recorded unless the officer employee has either admitted the facts on which such article of charge is based or has had a reasonable opportunity of defending himself against such article of charge. The Inquiring Authority, where it is not itself the Disciplinary Authority, shall forward to the Disciplinary Authority the records of inquiry which shall include y y y y y the report of the inquiry prepared by it under clause (i); the written statement of defense, if any, submitted by the officer employee referred to in sub-regulation (15); the oral and documentary evidence produced in the course of the inquiry; written briefs referred to in sub-regulation (18), if any; and The orders, if any, made by the Disciplinary Authority and the Inquiring Authority in regard to the inquiry.

The Disciplinary Authority, if it is not itself the Inquiring Authority, may, for reasons to be recorded by it in writing, remit the case to the Inquiring Authority for fresh or further inquiry and report and the Inquiring Authority shall thereupon proceed to hold the further inquiry according to the provisions of Regulation 6 as far as may be.

The Disciplinary Authority shall, if it disagrees with the findings of the Inquiring Authority on any article of charge, record its reasons for such disagreement and record its own findings on such charge, if the evidence on record is sufficient for the purpose. If the Disciplinary Authority, having regard to its findings on all or any of the articles of charge, is of the opinion that any of the penalties specified in regulation 4 should be imposed on the officer employee it shall, notwithstanding anything contained in regulation 8, make an order imposing such penalty. If the Disciplinary Authority having regard to its findings on all or any of the articles of charge, is of the opinion that no penalty is called for, it may pass an order exonerating the officer employee concerned. Procedure for Imposing Minor Penalties (Regulation: 8) Where it is proposed to impose any of the minor penalties specified in clauses (a) to (e)of Regulation 4, the officer employee concerned shall be informed in writing of the imputations of lapses against him and given an opportunity to submit his written statement of defense within a specified period not exceeding 15 days or such extended period as may be granted by the Disciplinary Authority and the defense statement, if any, submitted by the officer employee shall be taken into consideration by the Disciplinary Authority before passing orders. Where, however, the Disciplinary Authority is satisfied that an inquiry is necessary, it shall follow the procedure for imposing a major penalty as laid down in regulation 6. The record of the proceedings in such cases shall include A copy of the statement of imputation of lapses furnished to the officer employee; The defense statement, if any, of the officer employee; and The orders of the Disciplinary Authority together with the reasons therefore. COMMUNICATION OF ORDERS (Regulation: 9) Orders made by the Disciplinary Authority under Regulation 7 or Regulation 8 shall be communicated to the officer employee concerned, who shall also be supplied with a copy of the report of inquiry, if any. COMMON PROCEEDINGS (Regulation: 10) Where two or more officer employees are concerned in a case, the authority competent to impose a major penalty on all such officer employees may make an order directing that disciplinary proceedings against all of them may be taken in a common proceeding. SPECIAL PROCEDURE IN CERTAIN CASES (Regulation:11) Notwithstanding anything contained in regulation 6 or regulation 7 or regulation 8, the Disciplinary Authority may impose any of the penalties specified in Regulation 4 if the officer employee has been convicted on a criminal charge, or on the strength of facts or conclusions arrived at by a judicial trial. Provided that the officer employee may be given an opportunity of making representation on the penalty proposed to be imposed before any order is made.

SUSPENSION (Regulation: 12) An officer employee may be placed under suspension by the competent authority y y y y y where a disciplinary proceeding against him is contemplated or is pending ; or where a case against him in respect of any criminal offence under investigation, inquiry or trial. An officer employee shall be deemed to have been placed under suspension by an order of the competent authority with effect from the date of his detention, if he is detained in custody, whether on a criminal charge or otherwise, for a period exceeding forty-eight hours; with effect from the date of conviction, if in the event of a conviction for an offence, he is sentenced to a term of imprisonment exceeding forty-eight hours and is not forthwith dismissed or removed or compulsorily retired consequent to such conviction.

Explanation: The period of fortyeight hours referred to in clause (b) of this sub-regulation shall be computed from the commencement of the imprisonment after the conviction and for this purpose, intermittent periods of imprisonment if any, shall be taken into account. Where a penalty of dismissal, removal or compulsory retirement from service imposed upon an officer employee under suspension is set aside in appeal or on review under these regulations and the case is remitted for further inquiry or action or with any directions, the order of his suspension shall be deemed to have continued in force on and from the date of the original order of dismissal, removal or compulsory retirement and shall remain in force until further orders. Where a penalty of dismissal, or removal or compulsory retirement from service imposed upon an officer employee under suspension is set aside or declared or rendered, void in consequence of or by a decision of Court of law, and the Disciplinary Authority on consideration of the circumstances of the case decides to hold further inquiry against him on the allegations on which the penalty of dismissal, removal or compulsory retirement was originally imposed, the officer employee shall be deemed to have been placed under suspension by the competent authority from the date of the original order of dismissal, removal or compulsory retirement and shall continue to remain under suspension until further orders. An order of suspension made or deemed to have been made under this regulation shall continue to remain in force until it is modified or revoked by the authority competent to do so. An order of suspension made or deemed to have been made under this regulation may at any time be modified or revoked by the authority which made or is deemed to have made the order. LEAVE DURING SUSPENSION (Regulation: 13) No leave shall be granted to an officer employee under suspension. SUBSISTENCE ALLOWANCE DURING SUSPENSION (Regulation: 14) An officer employee who is placed under suspension shall, during the period of such suspension and subject to sub-regulations (2) to (4) be entitled to receive payment from the bank by way of subsistence allowance on the following scale, namely:Basic Pay For the first three months of suspension 1/3 of the basic pay which the officer employee was

receiving on the date prior to the date of suspension irrespective of the nature of enquiry. For the subsequent period after 3 months from the date of suspension, Where the enquiry is held departmentally by the bank, of the basic pay, the officer employee was drawing on the date prior to the date of suspension and Where the enquiry is held by an outside agency, 1/3 of the basic pay which the officer employee was drawing on the date prior to the date of suspension for the next three months and of the basic pay which the officer employee was drawing on the date prior to the date of suspension for the remaining period of suspension. Allowances: For the entire period of suspension, dearness allowance and other allowances excepting conveyance allowance, entertainment allowance and special allowance will be calculated on the reduced pay as specified in (i) & (ii) of clause (a) above and at the prevailing rates or at rates applicable to similar category of officers. During the period of suspension an officer employee shall not be entitled to occupation of rentfree or free house of the banks car or receipt of conveyance or entertainment allowance or special allowance. No officer employee of the bank shall be entitled to receive payment of subsistence allowance unless he furnishes a certificate that he is not engaged in any other employment, business, profession or vocation. If during the period of suspension an officer employee retires by reason of his attaining the age of superannuation, no subsistence allowance shall be paid to him from the date of his retirement. PAY, ALLOWANCES AND TREATMENT OF SERVICE ON TERMINATION OF SUSPENSION (Regulation:15) Where the competent authority holds that the officer employee has been fully exonerated or that the suspension was unjustifiable, the officer employee concerned shall be granted the full pay to which he would have been entitled, had he not been suspended, together with any allowance of which he was in receipt immediately prior to his suspension, or may have been sanctioned subsequently and made applicable to all officer employees. In all cases other than those referred to in sub-regulation (1), the officer employee shall be granted such proportion of pay and allowances as the competent authority may direct; Provided that the payment of allowances under this sub-regulation shall be subject to all other conditions to which such allowances are admissible; Provided further that the pay and allowances granted under this sub-regulation shall not be less than the subsistence and other allowances admissible under regulation 14. In a case falling under sub-regulation (1), the period of absence from duty shall, for all purposes, be treated as a period spent on duty; In a case falling under sub-regulation (2), the period of absence from duty shall not be treated as a period spent on duty unless the competent authority specifically directs, for reasons to be recorded in writing, that it shall be so treated for any specific purpose. Employees on Deputation from the Central Government, State Government etc.

(Regulation 16) Where an order of suspension is made or disciplinary proceeding is taken against an officer employee, who is on deputation to the bank from the Central Government or the Statement Government, or Reserve Bank of India or another Public Sector Bank or banking company or a public financial institution or an institution wholly or substantially owned by the Reserve Bank of India or a public financial institution or public undertaking or a local authority, the authority lending his services ( hereinafter referred to as the 'Lending Authority') shall forthwith be informed of the circumstances leading to the order of his suspension, or the commencement of the disciplinary proceedings, as the case may be. In the light of the findings in the disciplinary proceeding taken against the officer employee If the Disciplinary Authority is of the opinion that any of the minor penalties should be imposed on him, it may pass such orders on the case as it deems necessary after consultation with the Lending Authority. Provided that in the event of a difference of opinion between the Disciplinary Authority and the Lending Authority, the services of the employee shall be placed at the disposal of the Lending Authority. If the Disciplinary Authority is of the opinion that any of the major penalties should be imposed on him, it should replace his services at the disposal of the Lending Authority and transmit to it the proceedings of the enquiry for such action as it deems necessary. If the officer employee submits an appeal against an order imposing a minor penalty on him it will be disposed of after consultation with the Lending Authority; Provided that if there is a difference of opinion between the Appellate Authority and the Lending Authority, the services of the officer employee shall be placed at the disposal of the Lending Authority, and the proceedings of the case shall be transmitted to that authority for such action as it deems necessary. APPEALS (Regulation 17) An officer employee may appeal against an order imposing upon him any of the penalties specified in regulation 4 or against the order of suspension referred to in regulation 12. The appeal shall lie to the Appellate Authority. An appeal shall be preferred within 45 days from the date of receipt of the order appealed against. The appeal shall be addressed to the Appellate Authority and submitted to the authority whose order is appealed against. The authority whose order is appealed against shall forward the appeal together with its comments and the records of the case to the Appellate Authority. The Appellate Authority shall consider whether the findings are justified or whether the penalty is excessive or inadequate and pass appropriate orders. The Appellate Authority may pass an order confirming, enhancing, reducing or setting aside the penalty or remitting the case to the authority which imposed the penalty or to any other authority with such direction as it may deem fit in the circumstances of the case; Provided that If the enhanced penalty which the Appellate Authority proposed to impose is a major penalty specified and an enquiry has not already been held in the case, the Appellate Authority shall direct that such an enquiry be held and thereafter consider the record of the inquiry and pass such

orders as it may deem proper. If the Appellate Authority decides to enhance the punishment but an enquiry has already been held, the Appellate Authority shall give a show-cause notice to the officer employee as to why the enhanced penalty should not be imposed upon him and shall pass final order after taking into account the representation, if any, submitted by the officer employee. REVIEW (Regulation 18) Notwithstanding anything contained in these regulations, the Reviewing Authority may at any time within six months from the date of the final order, either on his own motion or otherwise review the said order, when any new material or evidence which could not be produced or was not available at the time of passing the order under review and which has the effect of changing the nature of the case, has come or has been brought to his notice and pass such orders thereon as it may deem fit. Consultation with Central Vigilance Commission (Regulation 19) The bank shall consult the Central Vigilance Commission wherever necessary, in respect of all disciplinary cases having a vigilance angle. Service of Orders, Notices etc. (Regulation 20) Every order, notice and other process made or issued under these regulations shall be served in person on the officer employee concerned or communicated to him by registered post at his last known address. Power to Relax Time Limit and to Condone Delay (Regulation 21) Save as otherwise expressly provided in these regulations, the authority competent under these Regulations to make any order may, for good and sufficient reasons or if sufficient cause is shown, extend the time specified in these Regulations for anything required to be done under these regulations or condone any delay. Repeal and Saving (Regulation 22) Every rule, regulation, bye-law or every provision in any agreement or a resolution corresponding to any of the Regulations herein contained and in force immediately before the commencement of these Regulations and applicable to the officer employee is hereby repealed. Notwithstanding such repeal any order made or action taken under the provisions so repealed shall be deemed to have been made or taken under the corresponding provisions of these Regulations; Nothing in these regulations shall be construed as depriving any person to whom these regulations apply, of any right of appeal which had accrued to him under any of the provisions so repealed "An appeal pending at the commencement of these regulations against an order made before the commencement of these regulations shall be considered and orders thereon shall be made in accordance with these regulations; Any proceedings which have already been initiated but not yet been completed at the commencement of these regulations shall be continued and disposed as far as may be, in accordance with the provisions of these regulations, as if such proceedings were under these regulations.

Disciplinary Action against Workmen Staff and Procedure therefore : BIPARTITE SETTLEMENT 1.A person against whom disciplinary action is proposed or likely to be taken shall inthe first instance be informed of the particulars of the charge "against him and he shall have' a proper opportunity to give his explanation as to such particulars. Final orders shall be passed after due consideration of all the relevant facts and circumstances. With this object in view, the following shall apply. 2. By the expression "offence" shall be meant any offence involving moral turpitude for which an employee is liable to conviction and sentence under any provision of Law. (a) When in the opinion of the management an employee has committed an offence, unless he is otherwise prosecuted, the bank may take steps to prosecute him or get him prosecuted and in such a case he may also be suspended. (b) If he be convicted, he may be dismissed with effect from the date of his conviction or be given any, lesser form of punishment as mentioned in Clause 6 below. (c) If he be acquitted, it shall be open to the management to proceed against him under the provisions set out below in Clauses 11 and 12 infra relating to discharges. However, in the event of the management deciding after enquiry not to continue him in service, he shall be liable only for termination of service with three months pay and allowances in lieu of notice. And he shall be deemed to have been on duty during the period of suspension, if any, and shall be entitled to the full pay and allowances minus such subsistence allowance as he has drawn and to all other privileges for the period of suspension provided that if he be acquitted by being given the benefit of doubt he may be paid such portion of such pay and allowances as the management may deem proper and the period of his absence shall not be treated as a period spent on duty unless the management so directs. (d) If he prefers an appeal or revision application against his conviction and is acquitted, in case he had already been dealt with as above and he applies to the management for reconsideration of his case, the management shall review his case and may either reinstate him or proceed against him under the provisions set out below in Clauses 11 and 12 infra relating to discharge and the provision set out above as to pay, allowances and the period of suspension will apply the period upto- date for which full pay and allowances have not been drawn being treated as one of suspension. In the event of the management deciding, after enquiry not to continue him in service, the employee shall be liable only for termination with three months pay and allowance in lieu of notice, as directed above. 4. If after steps have been taken to prosecute an employee or to get him prosecuted, for an offence, he is not put on trial within a year of the commission of the offence, the management may then deal with him as if he had committed an act of "gross misconduct or of minor is conduct as defined below; provided that if the authority which was to start prosecution

proceedings refuses to do so or comes to the conclusion that there is no case for prosecution it shall be open to the management to proceed against the employee under the provisions set out below in Clauses 11 and 12 infra relating to discharge, but he shall be deemed to have been on duty during the period of suspension, if any, and shall be entitled to the full wages and Allowances and to all other privileges for such period. In the event of the management deciding, alter enquiry, not to continue him in service, he shall be liable only for termination with three months pay and allowances in lieu of notice as provided in Clause 3 above. If within the pendency of the proceedings thus instituted he is put on trial such proceedings shall be stayed pending the completion of the trial, after which the provisions mentioned in Clause 3 above shall apply. 5. By the expression gross misconduct shall be meant any of the following acts and omissions on the part of an employee: (a) Engaging in any trade or business outside the scope of his duties except with the written permission of the bank. (b) Unauthorized disclosure of information regarding the affairs of the bank or any of Its customers or any other person connected with the business of the bank which is confidential or the disclosure of which is likely to be prejudicial to the interests of the bank. (c) Drunkenness or riotous or disorderly or indecent behavior on the premises of the bank; (d) Willful damage or attempt to cause damage to the property of the bank or any of its customers; (e) Willful insubordination or disobedience of any lawful and reasonable order of the Management or of a superior; (f) habitual doing of any act which amounts to minor misconduct as defined below, habitual meaning a course of action taken or persisted in, notwithstanding that at least on three previous occasions censure or warnings have been administered or an adverse remark has been entered against him; (g) Willful slowing down in performance of work; (h) Gambling or betting on the premises of the bank (i) Speculation in stocks, shares, securities or any commodity whether on his account or that of any other persons; (j) Doing any act prejudicial to the interest of the bank or gross negligence or negligence involving or likely to involve the bank in serious loss; (k) Giving or taking a bribe or illegal gratification from a customer or an employee of the bank; (l) Abetment or instigation of any of the acts or omissions above mentioned. (m) Knowingly making a false statement in any document pertaining to or in connection with his employment in the bank. (n) Resorting to unfair practice of any nature whatsoever in any examination conducted by the Indian Institute of Bankers or by or on behalf of the bank and where the employee is caught in the act of resorting to such unfair practice and a report to that effect has been received by the bank from the concerned authority. (o) Resorting to unfair practice of any nature whatsoever in any examination conducted by the Indian Institute of Bankers or by or on behalf of the bank in cases not covered by the above Sub Clause (n) and where a report to that effect has been received by the bank from the concerned authority and the employee does not accept the charge.

(p) Remaining unauthorized absent without intimation continuously for a period exceeding 30 days: (q) Misbehavior towards customers arising out of bank's business. (r) Contesting election for parliament / legislative assembly / legislative council / local bodies / Municipal Corporation / Panchayat, without explicit written permission of the bank. (s) Conviction by a criminal Court of Law for an offence involving moral turpitude. (t) Indulging in any act of 'sexual harassment' of any woman at her work place. Note: Sexual harassment shall include such unwelcome sexually determined behaviour (whether directly or otherwise) as (a) Physical contact and advances; (b) Demand or request for sexual favors; (c) Sexually co1oured remarks; (d) Showing pornography; or (e) Any other unwelcome physical verbal or non-verbal conduct of a sexual nature. (u) (For State Bank of India ) the giving or taking or abetting the giving or taking of dowry or demanding directly or indirectly from the parents or guardians of a bride or bridegroom. as the case may be, any dowry. Explanation - For the purpose of sub-clause (u) the word 'dowry' has the same meaning as in the "Dowry Prohibition Act, 1961" 6. An employee found guilty of gross misconduct may: (a) Be dismissed without notice; or (b) Be removed from service with superannuation benefits i.e. Pension and or Provident Fund and Gratuity .as would be due otherwise under the Rules or Regulations prevailing at the relevant time and' without disqualification from future employment; or (c) Be compulsorily retired with superannuation benefits i.e. Pension and/or Provident Fund and Gratuity as would be due otherwise under the Rules or Regulations prevailing at the relevant time and without disqualification from future employment; or (d) Be discharged from service with superann uation benefits i.e. Pension and' or Provident Fund and Gratuity as would be due otherwise under the Rules or Regulations prevailing at the relevant time and without disqualification from future employment: or (e) Be brought down to lower stage in the scale of pay up to a maximum of two stages; or (f) Have his increments stopped with or without cumulative effect; or (g) Have his special pay withdrawn; or (h) Be warned or censured, or have an adverse remark entered against him; or (i) Be fined. 7. By the expression "minor misconduct" shall be meant any of the following acts and Omissions on the part of an employee: (a) Absence without leave or overstaying sanctioned leave without sufficient grounds; (b) Unpunctual or irregular attendance;

(c) Neglect of work, negligence in performing duties; (d) Breach of any rule of business of the bank or instruction for the running of any department; (e) Committing nuisance on the premises of the bank; (f) Entering or leaving the premises of the bank except by an entrance provided for the purpose: (g) Attempt to collect or collecting moneys within the premises of the bank without the previous permission of the management or except as allowed by any rule or law for the time being in force: (h) Holding or attempting to hold or attending any meeting on the premises of the bank without the previous permission of the management or except in accordance with the provisions of any rule or law for the time being in force: (i) Canvassing for union membership or collection of union dues or subscriptions within the premises of the bank without the previous permission of the management or except in Accordance with the provisions of any rule or law for the time being in force: (j) Failing to show proper consideration, courtesy or attention towards officers, customers or other employees of the bank, unseemly or unsatisfactory behavior while on duty; (k) Marked disregard of ordinary requirements of decency and cleanliness in person or dress; (l) Incurring debts to an extent considered by the management as excessive; (m) Resorting to unfair practice of any nature whatsoever in any examination conducted by the Indian Institute of Bankers or by or on behalf of the bank in cases not covered by sub-clause (n) under 'Gross Misconduct' and where a report to that effect has been received by the bank from the concerned authority and the employee accepts the charge; (n) Refusal to attend training programs without assigning sufficient and valid reasons: (o) Not wearing, while on duty, identity card issued by the bank; (p) Not wearing, while on duty, the uniforms supplied by the bank, in clean condition. 8. An employee found guilty of minor misconduct may: (a) Be warned or censured; or (b) Have an adverse remark entered against him; or (c) Have his increment stopped for a period not longer than six months. 9. A workman found guilty of misconduct, whether gross or minor, shall not be given more than one punishment in respect of anyone charge. 10. In all cases in which action under Clauses 4, 6 or 8 may be taken, the proceedings held shall be entered in a book kept specially for the purpose. in which the date on which the proceedings are held, the name of the employee proceeded against, the .charge or charges, the evidence on which they are based, the explanation and the evidence, if any, tendered by the said employee, the finding or findings. with the grounds on which they are based and the order passed shall be recorded with sufficient fullness, as clearly as possible and such record of the proceedings shall be signed by the officer who holds them, after which a copy of such record shall be furnished to the employee concerned if so requested by him in writing.

11. When it is decided to take any disciplinary action against an employee such decision shall be communicated to him within three days thereof. 12. The procedure in such cases shall be as follows:(a) An employee against whom disciplinary action is proposed or likely to be taken shall be given a charge-sheet clearly setting forth the circumstances appearing against him and a date shall be fixed for enquiry, sufficient time being given to him to enable him to prepare and give his explanation as also to produce any evidence that he may with to tender In his defense. He shall be permitted to appear before the officer conducting the enquiry, to cross-examine any witness on whose evidence the charge rests and to examine witnesses and produce other evidence in his defense. He shall also be permitted to be defended; (I) (X) By a representative of a registered trade union of bank employees of which he is a member on the date first notified for the commencement of the enquiry. (y) Where the employee is not a member of any trade union of bank employees on the aforesaid dates by a representative of a registered trade union of employees of the bank in which he is employed: OR (II) At the request of the said union by a representative of the state federation or all India Organization to which such union is affiliated; OR (III) With the Bank's permission, by a lawyer. He shall also be given a hearing as regards the nature of the propose punishment in case any charge is established against him. (b) Pending such inquiry or initiation of such inquiry he may be suspended, but if on the conclusion of the enquiry it is decided to take no action against him he shall be deemed to have been on duty and shall be entitled to the full wages and allowances and to all other privileges for the period of suspension; and. if some punishment other than dismissal is inflicted the whole or a part of the period of suspension, may, at the discretion of the management, be treated as on duty with the right to a corresponding por1ion of the wages, allowances, etc. (c) In awarding punishment by way of disciplinary action the authority concerned shall take into account the gravity of the misconduct. the previous record, if any, of the employee and any other aggravating or extenuating circumstances, that may exist Where sufficiently extenuating circumstances exist the misconduct may be condoned and in case such misconduct is of the gross type he may be merely discharged, with or without notice or on payment of a month's pay and allowances, In lieu of notice. Such discharge may also be given where the evidence is found to be insufficient to sustain the charge and where the bank does not, for some reason or other, think it expedient to retain the employee in question any longer in service. Discharge in such cases shall not be deemed to amount to disciplinary action. (d) If the representative defending the employee is an employee of the same bank at an outstation branch within the same State, he shall be relieved on special leave (on full pay and allowances) to represent the employee and be paid one return fare. The class of fare to which he will be entitled would be the same as while travelling on duty. In case of any adjournment at the instance of the bank/enquiry officer he may be asked to resume duty and if so, will be paid fare for the consequential journey. He shall also be paid full halting allowance for the period he stays at the place of the enquiry for defending the employee as also for the days of the journeys which are

undertaken t the bank's cost. Explanation: 'State' for the purpose shall mean the area which constitutes a political State, but this explanation will not apply to SBI: (e) An enquiry need not be held if : (i) The bank has issued a show cause notice to the employee advising him of the misconduct and the punishment for which he may be liable for such misconduct; (ii) The employee makes a voluntary admission of his guilt in reply to the aforesaid show cause notice; and (iii) The misconduct is such that even if proved the bank does not intend to award the punishment of discharge or dismissal. However, if the employee concerned requests a hearing regarding the nature of punishment such a hearing shall be given. (f) An enquiry need not also be held if the employee is charged with minor misconduct and the punishment proposed to be given is warning or censure. However, (i) The employee shall be served a show cause notice advising him of the misconduct and the evidence on which the charge is based; and (ii) The employee shall be given an opportunity to Submit his written statement of defense, and for this purpose has a right to have access to the documents and material on which the charge is based; (iii) If the employee requests a hearing such a hearing shall be given and in such a hearing he may be permitted to be represented by a representative authorized to defend him in an enquiry had such an enquiry been held. (g) Where an employee is charged with a minor misconduct and an enquiry is not held on two previous occasions, an enquiry shall be held in respect of the third occasion. 13. Where the provisions of this Settlement conflict with the procedure or rules in force in any bank regarding disciplinary action, they shall prevail over the latter. There may, in such procedure or rules, exist certain provisions outside the scope of the provisions contained in this Settlement enabling the bank to dismiss, warn, censure, fine an employee or have his increment stopped or have an adverse remark entered against him. In all such cases also the provisions set out in Clauses 10 and 11 above shall apply. 14. The Chief Executive Officer or the Principal Officer in India of a bank or an Alternate Officer at the Head Office or Principal Office nominated by him for the purpose shall decide which officer (i.e. the disciplinary authority) shall be empowered to take disciplinary action in the case of each office or establishment. He shall also decide which officer or body higher in status than the officer authorized to take disciplinary action shall act as the appellate authority to deal with or hear and dispose of any appeal against order passed in disciplinary matters. These authorities shall be nominated by, designation, to pass original orders or hears and dispose of appeals from time to time and a notice specifying the authorities so nominated shall

be published from time to time on the banks notice board. It is clarified that the disciplinary authority may conduct the enquiry himself or appoint another officer as the Enquiry Officer for the purpose of conducting an enquiry. The appellate authority shall, if the employee concerned is so desirous, in a case of dismissal, hear him or his representatives before disposing of the appeal. In cases where hearings are not required, an appeal shall be disposed of within two months from the date of receipt thereof. In cases where hearings are required to be given and requested for, such hearings shall commence within one month from the date of receipt of the appeal and shall be disposed of within one month from the date of conclusion of such hearings. The period within which an appeal can be preferred shall be 45 days from the date on which the original order has been communicated in writing to the employee concerned.

15. Every employee who is dismissed or discharged shall be given a service certificate, without avoidable delay. 16. Any notice, order, charge-sheet communication or intimation which is meant for an individual employee, shall be in a language understood by the employee concerned. In the case of an absent employee notice shall be sent to him by registered post with acknowledgement due. If an employee refuses to accept any notice, order, charge-sheet, written communication or written intimation in connection, with disciplinary proceedings when it is sought to be served upon him, such refusal shall be deemed to be good service upon him, provided such refusal takes place in the presence of at least two persons including the person who goes to effect service upon him. Where any notice, order, charge-sheet, intimation or any other official communication which is meant for an individual employee is sent to him by registered post acknowledgement due of the last recorded address communicated in writing by the employee and acknowledged by the bank, the same is to be deemed as good service. Date of effect. 1. The provisions under this Memorandum of Settlement shall come into effect from the date of the Settlement and shall continue to govern and bind the parties until the Settlement is terminated by either party giving to the other a statutory notice as prescribed in law for the time being in force. 2. Copies of the Memorandum of Settlement will be jointly forwarded by the parties to the authorities listed in Rule 58 of the Industrial Disputes (Central) Rules 1957, so that the terms and conditions hereof are binding on the parties as provided in law.