The State Bank of India board has approved the voluntary retirement scheme for 2020, a senior official told TNIE.
All permanent employees who have completed 25 years of service or 55 years of age can opt for the scheme. However, it is up to the bank to accept or reject applications.
Those who avail VRS get one year’s full salary or half pay for the remaining service period (whichever amount is lower). SBI offers VRS every year between December and March, subject to board approval.
The bank doesn’t have any ‘targets’ for VRS; each year, 15,000-20,000 SBI employees retire.
VRS gives the bank the opportunity to rationalise costs while officers who have reached a saturation level in their career get a respectable exit option.
However, National Organisation of Bank Workers opposed the move saying it reflects the management’s anti-worker attitude.