The State Bank of India (SBI) is planning a voluntary retirement scheme (VRS) for which over 30,000 employees will be eligible.

According to a report in news agency PTI, the state-lender is planning the VRS scheme to optimise its costs. Out of the 2.49 lakh employees of the bank, at least 30,190 employees are eligible for the VRS scheme, which still awaits the board's approval.

The proposed scheme — ‘Second Innings Tap VRS-2020’ — is aimed at optimising human resources and costs of the bank. If 30 per cent of eligible employees opt for retirement under the scheme, the bank will save Rs 1,662.86 crore, as per estimates based on July 2020 salary.

The news agency PTI said that the draft VRS scheme will provide an option and a 'respectable 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 scheme will be opened to all permanent officers and staff who have put in 25 years of service or completed 55 years of age on the cut-off date. The scheme will open on December 1 and will remain open till the end of February, it said, adding that applications for VRS will be accepted during this period only.

As per the proposed eligibility criteria, a total of 11,565 officers and 18,625 staff members will be eligible for the scheme.

“The staff member whose request for retirement under VRS is accepted will be paid an ex-gratia amounting 50 per cent of salary for the residual period of service (up to the date of superannuation), subject to a maximum of 18 months’ last drawn salary,” the PTI report quoting the VRS scheme said. #casansaar (Source - PTI, IndiaToday)