Move on salary disbursal through BoM irks many

In a move that has irked many, Maharashtra has directed all state-aided educational institutions to disburse salaries through the Bank of Maharashtra. Bankers are flummoxed at the move because the Bank of Maharashtra is a nationaliaed bank.

Bankers are furious because they have had extension counters in most educational institutions for several years and have maintained accounts to maturity.

"We started with a handful of accounts and worked to make the extension counter a profitable one. With the state deciding to disburse salaries in aided educational institutions only through the Bank of Maharashtra, we stand to lose," said the manager of another bank.

The Directorate of Education (Higher Education), Pune has come out with a circular quoting a government resolution of February 17, directing that salaries of employees of government aided institutions be routed through the Bank of Maharashtra.

The Director Education (Higher Education), K M Kulkarni has asked joint directors in the department to forward the circular to universities and aided colleges.

This has led to consternation among commercial banks who do not see difference between the services they can and are offering and offered by the Bank of Maharashtra.

Bank unions are also questioning the move. President of Rashtriya Central Bank Officers' Congress (INBOC), T K Venkatesh said that the direction was senseless. "Why do they want to do this? No bank is going to close it's extension counter in any college or government-aided educational institute," he observed.

Venkatesh said most extension counters operated on thin margins and were linked to some branch.

"However, they are independent units and some even offer all facilities," he said adding that banks had spent money and manpower in setting them up.

President, of AIBOA affiliated union, All India Central Bank Officers Association, Rajan Majumdar too expressed surprise at the move. He said there was no specific visible advantage that the government was seeking to derive for the state.

"The bank cannot allocate anything for the state. The Bank of Maharashtra is an all-India bank today and what the state is doing defies logic," he stated.