DEMAND FOR FORMULATION OF A SOFT LOAN SCHEME AND EXTENSION OF TIME FOR REFUND OF PF CONTRIBUTION BY SERVING EMPLOYEES OF ERSTWHILE KVGB

The Joint Action Committee of KAGBEU and KAGBOA, representing the majority of employees and officers across the Bank, writes to bring to your kind notice the genuine difficulties and severe financial concerns faced by our staff following the issuance of HR Wing Memo No. 226/2026-27 dated 05.10.2026. As per the instructions in the memo referred above, 181 serving employees and officers of erstwhile Karnataka Vikas Grameena Bank (eKVGB) covered under the Bank's Pension Scheme have been advised to refund the Bank's contribution towards Provident Fund along with interest up to 30.09.2026 in one lump sum by 31.10.2026, with a provision for additional interest at 8.25% p.a. thereafter. 1. FINANCIAL CHALLENGE FOR THE EMPLOYEES Lump-Sum Repayment Pressure: The net refund amounts listed in Annexure-I are substantial, ranging up to nearly ₹7 Lakhs per individual. Arranging such a large amount in a single lump sum within a brief period of 25 days is creating significant financial strain. Impact on Monthly Budgets: Our staff members have pre-existing family commitments, living expenses, and regular loan obligations. Managing this additional payment directly out of monthly salaries without financial assistance is exceptionally difficult. 2. REFERENCE TO PREVIOUS BANK PRECEDENT We would like to recall a similar situation in the erstwhile Karnataka Gramin Bank, where the management extended supportive assistance to the staff under similar circumstances. Vide Circular No. 81/2020-21 dated 13.07.2020, when employees were required to remit differential arrears toward NPS/PF contributions, the Bank thoughtfully introduced a dedicated Staff Loan Scheme. This scheme helped staff fulfil their obligations comfortably while avoiding high-cost borrowings outside. 3. OUR DEMAND Keeping in view the welfare of the staff and ensuring smooth compliance with the pension regulations, the Joint Action Committee earnestly requests your goodselves to consider the following measures favourably: Introduce a Special Staff Loan Facility: Formulate a soft loan scheme (on the lines of Circular No. 81/2020-21) to cover the required PF refund amount, repayable in comfortable monthly instalments. Extend the Payment Deadline: Kindly extend the remittance deadline of 31.10.2026 until the proposed loan facility is made operational and disbursed. In view of the tight deadline of 31.10.2026 and the severe financial stress on the 181 affected staff members, we request your immediate intervention in this matter. We urge the management to take urgent necessary steps to formulate the soft loan scheme and grant an immediate extension of time for remittance, ensuring much-needed relief to our employees.