CHAPTER I

INTRODUCTION

1.1: Title, commencement & application

1.1.1 These rules may be called ' The Federal Bank Limited (Officers’) Service Rules
2002'.

1.1.2 Such of those rules which have not already come into force on dates prior to the
framing of these rules shall come into force from 1st September 2002.

1.1.3. These rules shall apply to all officers of The Federal Bank Limited and to such
other employees of the Bank to whom they may be made applicable by specific
covenant to that extent and subject to such conditions as stipulated in the
covenant.

1.1.4 In these rules, unless the subject or context otherwise requires:

a) words imparting the masculine gender shall be taken to include females; and
b) words in the singular shall include the plural, and vice versa.

1.2: Definitions

1.2.1"The rules" means these rules and includes the schedule and annexures
appended to these rules.

1.2.2 "Bank" means The Federal Bank Limited.

1.2.3 "Board" means the Board of Directors of the Bank.

1.2.4 "MD & CEO" means the Managing Director & Chief Executive Officer of the Bank.

1.2.5 "Disciplinary Authority" means the authority which is competent to initiate

disciplinary proceedings and to impose on an officer any penalties specified in rule
2.3.

1.2.6 "Enquiring Authority" means any person appointed by the Disciplinary Authority for
enquiring into the truth of any imputation of misconduct or misbehaviour against an
officer.

1.2.7 "Appellate Authority" means the authority specified in the schedule to dispose of
appeals.

1.2.8 "Reviewing Authority" means the competent authority specified in the schedule.

1.2.9 "Competent authority" means the authority appointed by the Board for the
purposes of these rules.

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1.2.10 "Salary disbursing authority" means the principal officer or the officer in charge of
the branch, office, or department where from the salary of the officer concerned is
disbursed, or any other officer of the Bank so designated by the MD & CEO or by
any other competent authority for the purpose.

1.2.11 "Officer" means a person who holds a supervisory, administrative or managerial

post in the Bank or any other person who has been appointed and is functioning as
an officer of the Bank by whatever designation called and includes such a person
whose services are temporarily placed at the disposal of any other organisation for
the time being, but shall not include casual, work charged or contingent staff or the
award staff.

1.2.12 "Award staff" means the persons covered by the "Award" as defined in the
Industrial Disputes (Banking Companies) Decision Act, 1955.

1.2.13"Person" shall include any company or association or body of individuals, whether

incorporated or not.

1.2.14 "Family", unless otherwise specified for the purpose of any other rule, means —

a) in the case of male officer, his wife, whether residing with him or not, but does
not include a legally separated wife and in the case of female officer, her
husband, whether residing with her or not, but does not include a legally
separated husband;
b) children or step children of the officer, whether residing with the officer or not,
and wholly dependent on such officer but does not include children or step
children of whose custody the officer has been deprived of by or under any law;
and
c) any other person related to by blood or marriage, to the officer or his spouse
and wholly dependent upon such officer.

1.2.15 "Relative" for the purpose of these rules shall, unless the subject or context
otherwise requires, means and includes (a) spouse; (b) father; (c) mother
(including step-mother); (d) son (including step-son); (e) son’s wife; (f) daughter
(including step-daughter); (g) daughter’s husband; (h) brother (including step-
brother); (i) brother’s wife; (j) sister (including step-sister); (k) sister’s husband;
(l) brother (including step-brother) of the spouse; and (m) sister (including step-
sister) of the spouse.

1.2.16 "Pay" means the basic pay.

1.2.17 "Salary" means the aggregate of the basic pay and dearness allowance.

1.2.18 "Emoluments" means the aggregate of salary and allowances, if any.

1.2.19 "Schedule" means the schedule appended to these rules.

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1.2.20 "Calendar year" means the period commencing from the 1st day of January of a
year and ending with the 31st day of December of the same year.

1.2.21 "Year" means a continuous period of twelve months.

1.3: General

1.3.1 Every officer shall, at all times take all possible steps to ensure and protect the
interests of the Bank and discharge his duties with utmost integrity, honesty,
devotion and diligence and do nothing which is unbecoming of a bank officer.

1.3.2 Every officer shall maintain good conduct and discipline and show courtesy and
attention to all persons in all transactions and negotiations.

1.3.3 If an officer honestly believes that acting in accordance with a direction given to
him by his official superior will not be in the best interests of the Bank, the officer
may withhold action on the direction, and, if he so does, shall immediately inform
the superior and his next higher authority that he is withholding action on the
direction, giving the reasons therefore. If in response to his communication, the
officer receives a fresh direction from the superior or his higher authority, the
officer shall act in accordance with the fresh direction.

1.3.4 Every officer shall take all possible steps to ensure the integrity and devotion to
duty of all persons for the time being under his control and authority.

1.4: Observance of secrecy

Every officer shall maintain the strictest secrecy regarding the Bank's affairs and the
affairs of its constituents and shall not divulge, directly or indirectly, any information of a
confidential nature either to a member of the public or to an outside agency or to any
other employee of the bank not entitled to such information unless-

a) divulging of such information is in accordance with the law or in accordance with

the practices and usages customary amongst banks;
b) he is compelled to divulge such information by judicial or other authority
empowered to gather such information under authority of law;
c) instructed to do so by a superior officer in the discharge of his duties.

1.5: Employment of relatives of officers

1.5.1 No officer shall use his position or influence directly or indirectly to secure
employment for any person related, whether by blood or marriage, to the
employee or to the employee’s wife or husband, whether such a person is
dependent on the employee or not.

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1.5.2 An officer shall not, in the discharge of his official duties, knowingly:

a) consider, grant or authorise the grant of or deal with any credit or other facility
involving a current or contingent risk to the Bank to, or
b) entertain any proposal from, or enter into or authorise entering into by or on
behalf of the Bank any contract, agreement, or arrangement in any matter with-

any person if any relative of the officer is employed by or has an interest in that person
or in the facility, proposal, contract, agreement or arrangement. The officer shall inform
his immediate superior officer of such facility, proposal, contract, agreement, or
arrangement, which shall thereafter be dealt with or disposed of according to the
superior’s instructions:

Provided, however, this rule shall not apply where the person is a company or firm in
which the interest of an officer or his relative is limited to share holding of not more than
2(two) per cent of its paid-up capital.

1.5.3 If and when an officer knows that a relative of his:

a) is proposed to be employed by a person to whom the Bank has extended any

credit or other facility involving a current or contingent risk to the Bank; or
b) is proposed to be employed by a person who has sought any such facility and
the proposal or application is with the Bank or under its consideration pending
approval or disbursement,

the officer shall promptly inform the principal officer of the HR Administration Division
accordingly.

1.6: Taking up outside employment

1.6.1 No officer shall, except with the previous written consent of the Bank, engage
directly or indirectly in any profession, trade, or business, or undertake any other
employment, or canvass business for any insurance company or commission
agency in which a relative of the officer has an interest:

Provided, however, an officer may, without such consent and unless directed otherwise
by the competent authority, undertake honorary work of a social or charitable nature, or
occasional work of literary, artistic, scientific, cultural, educational, religious, or social
character, which does not interfere with the discharge of his official duties.

1.6.2 No officer shall, except in the discharge of his official duties and without the
previous written consent of the Bank, take part in the registration, promotion, or
management of any bank, company, or co-operative society other than a co-
operative or other society formed for the benefit of employees of the Bank or for
the pursuit of literary, scientific, cultural, religious, or charitable objectives.

1.6.3 No officer shall, except with the previous written consent of the competent
authority, accept any fee or remuneration for any work done by him for any public
body or private person.

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1.6.4 Every officer shall report to the principal officer of the HR Administration
Division if any member of his family is engaged in a trade or business or owns
or manages an insurance agency or commission agency.

1.7: Contribution to the press and other media

1.7.1 No officer shall, except with the previous written consent of the competent
authority, own wholly or in part or conduct or participate in the editing, printing,
publishing or managing of any newspaper, magazine, or other publication.

1.7.2 No officer shall, except in the bona fide discharge of his authorized official duties
or otherwise with the previous written consent of the competent authority,

a) participate in radio or television broadcast,or other public audio or visual

presentation,or seek or agree to publication of any letter or article either in his
own or assumed name or anonymously or in the name of any other person in any
newspaper,magazine or other periodical; or
b) disclose, make public or publish or cause to be published or pass on to any other
person any document, paper, or information which may come to his knowledge
or into his possession in his official capacity, and which has not already been
published or released to the public by the Bank; or
c) publish or cause to be published any book or other printed matter of which he is
the author; or
d) deliver a talk or lecture at public meetings or other forums

Provided, however, no such written consent is required for such broadcast,

presentation, publication, or talk or lecture of a purely literary, artistic, scientific, cultural,
educational, religious, or social character, but the officer shall keep the competent
authority informed thereof.

1.8: Demonstrations

No officer shall engage or participate in any demonstration which is prejudicial to the

sovereignty and integrity of India, the security of the state, friendly relations with foreign
states, public order, decency, or morality, or which involves contempt of court,
defamation, or incitement to an offence

1.9: Prohibition against joining certain associations

No officer shall:

a) join, or continue to be a member of, or otherwise be directly or indirectly

associated with, an association the objectives or activities of which are prejudicial
to the sovereignty and integrity of India and public order or morality; or
b) join, or continue to be a member of, or otherwise be directly or indirectly
associated with, any trade union of non-officer staff of the Bank or of any other
bank or of other organisation.

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1.10: Prohibition against participation in politics and standing for election

No officer shall, without the explicit written permission of the Bank, take an active part in
politics or in any political function or demonstration, or stand for election to a local self-
governing body or a legislative body. Where an officer has sought such permission, the
competent authority will convey the Bank’s decision to the officer concerned within ten
days from receipt of the request.

1.11: Giving evidence

1.11.1 Save as provided in rule 1.11.3 no officer shall, except with the previous approval
of the competent authority, give evidence in connection with any enquiry
conducted by any person, committee or authority.

1.11.2 Where any approval has been accorded as above, no officer giving such
evidence shall criticise the policy or any action of the Central Government or of a
State Government or of Reserve Bank of India or of the Bank.

1.11.3. Nothing in these rules shall apply to any evidence given

a) at any enquiry before an authority appointed by the Central Government, State

Government, Parliament or a State Legislature; or
b) in any judicial enquiry; or
c) at any departmental enquiry ordered by the competent authority.

1.12: Public demonstrations in honour of bank officers

1.12.1 No officer shall, except with the previous written consent of the competent
authority, receive any complimentary or valedictory address or accept any
testimonial or attend any function or entertainment held in honour of the officer or
any other employee of the Bank:

Provided, however, this rule shall not apply to:

a) a substantially private or informal function held in honour of the officer or other

employee to bid him farewell on his recent or ensuing retirement or transfer; and
b) acceptance of a simple and inexpensive entertainment in honour of the officer or
any other employee of the Bank arranged by an association of the Bank’s
employees.

1.12.2 No officer shall either directly or indirectly exercise pressure or influence on any
employee of the Bank to induce or compel any employee to subscribe towards
any farewell entertainment.

1.13: Seeking to influence

No officer shall bring or attempt to bring any political or other outside or any form
of influence to bear upon any superior authority to further his interests in respect
of matters pertaining to his service in the Bank.

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1.14: Absence from duty and leaving station

No officer shall absent himself from his duty or be late in attending office or leave the
station without having first obtained the permission of the competent authority:

Provided that in the case of unavoidable circumstances where availing of prior

permission is not possible or is difficult, such permission may be obtained later subject
to the satisfaction of the competent authority that such a permission could not have
been obtained.

1.15: Undertaking journey abroad

An officer desirous of leaving the country on leave shall inform HR Administration

Division under intimation to the controller concerned before undertaking such journey.

1.16: Acceptance of gifts

1.16.1 Save as otherwise provided in these rules, no officer shall accept or permit any
member of his family or any person acting on his behalf to accept any gift.

Explanation: The expression 'gift' shall include free transport, boarding, lodging
or other service or any other pecuniary advantage when provided by any person
other than a relative or a personal friend having no official dealings with the
officer.

Note: A casual meal, lift in a vehicle or other social hospitality shall not be
deemed to be a gift.

1.16.2 On occasions such as marriages, anniversaries, funerals or religious functions

when the making of gifts is in conformity with the prevailing religious or social
practice, an officer may accept gifts from his relatives but he shall make a report
to the competent authority if the value of the gift exceeds Rs.10,000/-.

1.16.3 On such occasions as specified in rule 1.16.2 above an officer may also accept
gifts from his personal friends having no official dealings with him but he shall
make a report to the competent authority if the value of such gift exceeds
Rs.2,500/-.

1.16.4 In any other case, the officer shall not accept any gifts without the written
consent of the competent authority if the value of the gifts exceeds Rs.250/-:

Provided that when more than one gift has been received from the same person or
concern within a period of twelve months the matter shall be reported to the competent
authority if the aggregate value thereof exceeds Rs.1000/-.

Note: As a normal practice an officer shall not accept any gift or lavish or frequent
hospitality from any person or institution having official dealings with the officer.

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1.16.5 No officer shall give or take or demand or abet the giving or taking of dowry.

Explanation:- For the purpose of this rule, 'dowry' has the same meaning as in the
Dowry Prohibition Act 1961 (Act 28 of 1961).

1.17: Lending and borrowing

1.17.1 No officer shall in his individual capacity borrow or permit any member of his
family to borrow or otherwise place himself or a member of his family under a
pecuniary obligation either by guaranteeing or otherwise to a broker or a money
lender or a subordinate employee of the Bank or any person, association of
persons, firm, company or institution, whether incorporated or not, having
dealings with the Bank.

1.17.2 No officer shall in his individual capacity incur debts at a race-meeting.

1.17.3 No officer shall in his individual capacity lend money to a constituent of the Bank
or have personal dealings with such constituent in the purchase or sale of bills of
exchange, government paper or any other securities:

Provided that rules 1.17.1 to 1.17.3 will not prohibit an officer to give to or accept from a
relative or personal friend a purely temporary loan of a small amount free of interest, or
operate a credit account with a bonafide tradesman or make an advance of pay to his
private employee:

Provided further that rules 1.17.1 to 1.17.3 will not prohibit an officer to obtain a loan
from a co-operative credit society/financial enterprises owned by State Governments
and housing loans from a scheduled commercial bank/housing co-operative
society/other financial institutions approved by National Housing Bank/any companies
approved by the Bank from time to time or stand as a surety in respect of a loan taken
by the spouse or another employee from those institutions. Certificate to enable
employees to take such loans or stand as surety for such loans shall be obtained from
the competent authority

1.18: Speculations in stocks, shares and investments

1.18.1 No officer shall speculate in any stock, share, or securities or commodities or

valuables of any descriptions or shall make investments which are likely to
embarrass or influence him in the discharge of his duties:

Provided that nothing in this rule shall be deemed to prohibit an officer from making a
bonafide investment of his own funds in such securities as he may wish to buy.

1.18.2 No officer shall make investment in the acquisition of shares/ debentures etc in
his name or in the name of spouse or dependant children or any other person,
out of quota reserved for the friends and associates of the directors of a
company, as also out of the employee's quota:

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Provided that nothing in this rule shall be deemed to prohibit an officer from making
investment in the employee’s quota offered by the Bank to the officer concerned.

1.19:Advance drawal of salary

No officer shall draw his salary in advance or overdraw his account with the Bank
against security or otherwise without the previous written consent of the competent
authority:

Provided that an officer proceeding on leave travel concession, if he requests, may be

permitted by the salary disbursing authority to draw in advance salary falling due for
payment during the period of the leave subject to a maximum of one month’s salary:

Provided further that an officer relieved on transfer to join another branch/office where
salary date falls due after the date of relieving but before his joining the new branch/
office may be permitted to draw advance salary from the branch/ office from where he is
relieved.

1.20:Subscriptions

No officer shall, except with the previous written consent of the competent authority, ask
for or accept contributions to or otherwise associate himself with the raising of any
funds or other collections or donations in cash or in kind in pursuance of any objective
whatsoever.

1.21:Indebtedness

An officer shall so manage his private affairs as to avoid habitual indebtedness or

insolvency. An officer against whom any legal proceedings are instituted for the
recovery of any debt due from him, or for adjudging him as an insolvent shall forthwith
report the full facts of the legal proceedings to the Bank.

1.22:Movable, immovable and valuable property

1.22.1 All officers of the Bank shall submit a statement of their assets and liabilities as
on 31st March, on or before 15th May every year. Statement in C 503 should be
sent in a sealed cover addressed to the principal officer of HR Administration
Division.

1.22.2 An officer shall be deemed to have committed the misconduct of accepting bribe
or illegal gratification from any constituent or any other person or colleague if he
is in possession of assets which he cannot satisfactorily account for, or pecuniary
resources or property disproportionate to his known sources of income.

Explanation:- For the purpose of this rule ‘known sources of income’ means income
received from any lawful source and such receipt has been intimated and disclosed in
accordance with rule 1.22.1.

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1.23: Vindication of acts and character of an officer

No officer shall, except with the previous written consent of the Bank, have recourse to
any court or to the press for the vindication of any official act which has been the subject
matter of adverse criticism or an attack of a defamatory character:

Provided that nothing in this rule shall be deemed to prohibit an officer from vindicating
his private character or any act done by him in his private capacity and where any
action for vindicating his private character or any act done by him in private capacity is
taken, the officer shall submit a report to his immediate superior regarding such action.

1.24: Consumption of intoxicating drinks and drugs

1.24.1. An officer shall strictly abide by any law relating to intoxicating drinks or drugs in
force in any area in which he may happen to be posted for the time being.

1.24.2 It is also the duty of the officer to see that

a) he takes due care that the performance of his duty is not affected in any way by
the influence of any intoxicating drink or drug,
b) he does not appear in public place in a state of intoxication, and
c) he does not habitually use any intoxicating drink or drug to excess.

1.25: Sexual harassment at work place

1.25.1 No officer shall indulge in any act of sexual harassment of any woman at her
work place.

1.25.2 Every officer who is in charge of a work place shall take appropriate steps to
prevent sexual harassment to any woman at such work place.

Explanation: For the purpose of this rule, ‘sexual harassment’ means any unwelcome
sexually determined behaviour (whether directly or by implication) and includes:

a) physical contact and advances;

b) demand or request for sexual favours;
c) sexually coloured remarks;
d) showing pornographic materials; and
e) any other unwelcome physical, verbal or non-verbal conduct of sexual nature.

1.26: Repeal and saving

1.26.1 Any direction, instruction or provision in an agreement or resolution

corresponding to any of the rules herein contained and in force immediately
before the commencement of these rules and applicable to the officers to whom
these rules are applicable is hereby repealed to the extent they are repugnant to
the rules herein contained.

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1.26.2 Notwithstanding such repeal:

a) a) 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 rules;
b) nothing in these rules shall be construed as depriving any person to whom
these rules apply of any right of appeal which had accrued to him under any of
the provisions so repealed;
c) an appeal pending at the commencement of these rules against an order made
before the commencement of these rules shall be considered and orders thereon
shall be made in accordance with these rules;
d) any proceedings which have already been initiated but not yet been completed at
the commencement of these rules shall be continued and disposed of as far as
may be, in accordance with the provisions of these rules, as if such proceedings
were proceedings under these rules.

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