Modified LFC/LTC rules for bankers under 12th BPS/ 9th Joint Note

In the latest settlement under 12^th BPS and 9^th Joint Note agreements signed on March 08, 2024, between the Unions and IBA; partial changes are made to existing LFC/LTC rules.  Accordingly, Leave Travel Concession (LTC) or Leave Fare Concession (LFC) facility shall be allowed for bank employees and officers are as under.

For Workmen:

1. Eligible Maximum Distance:  
2. Maximum permissible distance of 2700 kms (one way) for clerical staff within India for 2 years block. Maximum permissible distance of 2350 Kms. (one way) for Sub-Staff within India for 2 year block.
3. Maximum permissible distance 5400 Kms (one way) for clerical staff within India for 2 year block. Maximum permissible distance 4700 Kms. (one way) for Sub-Staff within India for 2 years block
4. All employees will be allowed to exercise an option within 90 days from the date of this settlement to avail LFC under 2 years/4 years block as the case may be. If no option is exercised within the stipulated period, the earlier option will continue to be operative.
5. Mode of transport and expenses allowed:

The mode of travel and expenses on travel for official duties and LFC/LTC existing provisions continue with the following changes.

1. Actual train or steamer fare incurred by the workmen is reimbursed including reimbursement of fare by premium trains like Rajdhani/Shatabdi/Tejas/Vande Bharat/Amrit Bharat etc. (except luxury trains) shall be allowed including premium trains like Rajdhani/Shatabdi/Tejas/vande Bharat/Amrut Bharat (except luxury trains). He/she may however travel by air economy class if so permitted by the competent authority having regard to exigencies of business or public interest.
2. If a workman has applied for LTC/LFC in stipulated time/ Leave in advance and has booked a ticket and LFC is declined or deferred by the management, the cancellation charge will be reimbursed by the bank.
3. When an employee has applied for LFC as per the stipulated time and the same is sanctioned and when an advance ticket is not possible, the ticket purchased under Tatkal/Premium Tatkal will be reimbursed.
4. GST charges levied on train fares shall be reimbursed over and above the entitlement.
5. Road Transport: To travel on duty between two places actual amount will be reimbursed if public transport is used or Rs.11 per Km plus toll fees, if any traveling by own vehicle. The same rule also applies to reimbursement of LFC claims.
6. While availing break in journey shall be permitted up to two times in the overall journey, the employee’s train fare up to the entitled distance shall be reimbursed.
7. LFC for an escort accompanying employee with benchmark disabilities allowed (read the details at the bottom of this post.)
8. OFFICERS of Scale I to Scale VII:

Maximum Distance eligibility under LTC/LFC:  

• Scale I, II & III 5500 Kms. (one way)
• Scale IV and above 6500 Kms.  (One way)

Mode of travel:

An officer, by exercising an option anytime during a 4 years block or two-year block, as the case may be, surrender and encash his LTC (other than travel to place of domicile) upon which he shall be entitled to receive an amount equivalent to eligible fare for the class of travel by train to which he is entitled up to distance of 5500 kms(one way) for officers JMG-Scale-I, MMG-SCale II & III. For scale IV and above the same will be for 6500 kms (one way).

For JMG-Scale-I: An officer of JMG-I while availing LTC is eligible to travel by airways in the lowest fare economy class in which case the reimbursement will be the actual fare or applicable to AC I class fare by train for the distance traveled whichever is less.

The same rule for reimbursement applicable to officers of JMG-I also applies to officers of MMG-II & MMG-III while availing LTC where the distance is less than 500 km.

For Middle Management Scale II &III:

Officers of MMG-II & MMG-III may travel by air if the distance is more than 500 Km. However, he/she may travel by air for a shorter distance having been permitted by competent authority having regard to exigencies of business or public interest.

For Senior Management Scale IV &V and TEGS VI and TEGS VII:

Officers of Senior Management Scale IV to Top Executive Grade (TEGS)-VII are entitled to travel by rail AC- I class including premium trains like Rajdhani/Shatabdi/Tejas/vande Bharat/Amrut Bharat (except luxury trains).

Officers of  Senior Management to Top Executive grade (TEGS VII)may travel by Car from paces not connected to Air/Railway stations provided the distance is less than 500 Km.  However, a major part of the distance between two places can be covered by air or train and only the rest of the distance is normally covered by car.

If an officer has applied for LTC or Leave in advance and has also booked a ticket and LFC is declined or deferred by the management, the cancellation charge will be reimbursed by the bank.

When an officer applies for LFC as per the stipulated time and the same is sanctioned and when the advance ticket is not possible, the ticket purchased under Tatkal/Premium Tatkal will be reimbursed.

GST charges levied on train fares shall be reimbursed over and above the entitlement.

To travel on duty between two places, the actual amount will be reimbursed if public transport is used or Rs.11 per Km plus toll fees, if any if traveling by own vehicle. The same rule also applies to reimbursement of LFC claims.

If an Officer has applied for LTC/LFC in stipulated time/ Leave in advance and has also booked a ticket and LFC is declined or deferred by the management, the cancellation charge will be reimbursed by the bank.

When an officer has applied for LFC as per the stipulated time and the same is sanctioned and when an advance ticket is not possible, the ticket purchased under Tatkal/Premium Tatkal will be reimbursed.

GST charges levied on train fares shall be reimbursed over and above the entitlement.

Road Transport: To travel on duty between two places actual amount will be reimbursed if public transport is used or Rs.11 per Km plus toll fees, if any if travelling by own vehicle. The same rule also applies to reimbursement of LFC claims.

Any officer may be authorised by the competent authority having regard to the exigencies of business or the public interest, to travel by his/her vehicle or by the Bank Vehicle.

LTC/HTC (Home Town Travel) can be availed independently where both husband and wife are working in the same bank.

Other information:

1. For employees working in North East states :

For employees working in North East states, LTC will begin from Guwahati and the eligible train fare from their place of work to Guwhati will be additionally paid. Similarly, the eligible fare for Andaman & Nicobar Islands to Chennai/Kolkata, Lakshadweep to Kochi, far-flung area branches in Himachal Pradesh, Uttarkhand, Sikkim, Jammu and Kashmir, or any other areas that are not directly connected by train shall be additionally reimbursed under LFC in addition to normal entitlement for the employees working in these areas to the nearest major Railway Station.

•  LTC facility shall be allowed for an escort who accompanies an officer with benchmark disabilities on a journey subject to the following conditions:
•  Prior approval of the competent authority is obtained on each occasion.
• The nature of physical disability of the officer in such as to necessitate an escort for a journey. In case of doubt, the decision of the head of the department/controller will be final.
• The officer with such benchmark disabilities does not have an adult family member as a dependent to accompany him/her.
•  The officer with such benchmark disabilities and the escort shall avail the concession, if any in the Rail/Bus fare might be extended by Railways/State Roadways authorities in such cases.
• e) Any other person who is entitled to LTC as the dependent does not accompany the officer with such benchmark disabilities on the journey.

      3.  Definition of family for the purpose of LFC/LTC and medical facility:

          i)   Employees’ spouse.

          ii)  Wholly dependent unmarried children (including step-children and legally adopted children)

          iii)  Wholly dependent physically and mentally challenged brothers/sisters with 40% or more disability.

          iv) widowed daughters and dependent divorced/separated daughters,

      v)  Sisters including unmarried/divorced/abandoned or separated from husband/widowed sisters,

      vi) Parents wholly dependent on the employee.

* The term wholly dependent family member shall mean such member of the family having a monthly income not exceeding a monthly income not exceeding Rs.18000/

1. If the monthly income of the parents exceeds Rs.18000/- or the aggregate monthly income of both the parents exceeds Rs.18000/-both the parents shall not be considered as wholly dependent on the employee.
2. Provided that in the case of physically and mentally challenged children irrespective of marriage, they shall be construed as dependent even after their marriage subject to however fulfilling the income criteria for dependent.

 For the medical expenses reimbursement scheme and LFC, for all employees, any two of the dependent fathers, mothers, fathers-in-law, and mothers-in-law shall be covered. The employee will have the choice to substitute either of the dependents or both once in a calendar year. For the calendar year 2024 for the medical insurance policy, the revised monthly income criteria of dependents shall be effective from 01.10.2024.

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