SBI VRS scheme 2020: Here's everything you need to know

Guwahati: The State Bank of India (SBI) is reportedly planning to introduce a voluntary retirement scheme (VRS) for its employees, which will be named as 'Second Innings Tap VRS-2020.'

A spokesperson from the bank said that it will provide a solution to employees who expressed a desire for making a strategic shift in their vocations, either due to professional growth limitations, mobility issues, physical health conditions, or family situations.

As per reports, around 30,000 employees of the bank will be able to get the benefits of the proposed VRS scheme. The SBI VRS 2020 scheme will provide an exit route to employees who have reached a level of saturation in their career, may not be at the peak of their performance, have some personal issue or want to pursue their professional or personal life outside the bank, the bank said.

As per the draft, all the permanent officers and staff worked in the bank for 25 years or completed 55 years of age on the cut-off date will be eligible for the scheme.

The SBI VRS 2020 scheme will be open on 1 December and will remain open till the end of February 2021. The draft mentioned that the applications for VRS will be accepted during this period only.

The bank said that the staff member whose request for retirement under VRS is accepted will be paid an ex-gratia amounting to 50% of salary for the residual period of service (up to the date of superannuation), subject to a maximum of 18 months' last drawn salary.

Other benefits like gratuity, pension, provident and medical benefits will be given to employees seeking VRS, it has been further revealed.

Moreover, the staff member retired under the scheme will be eligible for engagement or re-employment in the bank after a cooling-off period of two years from the date of retirement.

At the end of March 2020, the total employee strength of the country's largest lender stood at 2.49 lakh. As per reports, 11,565 officers and 18,625 staff of the bank will be able to avail of the SBI VRS scheme.

Even if 30% of the eligible employees decide to go for the new scheme, the bank will save around ₹2,170.85 crore, it has been estimated.

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