Tamil Nadu

Exempt private banks from Shops and Establishment Act: SLBC

The State Level Bankers’ Committee (SLBC), Tamil Nadu, has requested the State government to exempt private sector and foreign banks from the purview of the Shops and Establishment Act.

At a recent meeting, it cited the communication from Indian Banks’ Association (IBA) and the Department of Financial Services (DFS), Government of India, in this regard.

The SLBC said the IBA had informed that public sector banks in Tamil Nadu have been exempted from the provisions of the Shops and Establishment Act. But the banks in the other categories are under its purview.

The IBA had pointed out that the applicability of the Act to banks varied from State to State. The SLBC said the DFS had advised the Chief Secretary of all the State governments to examine the matter and suitably amend the provisions of the Shops and Establishment Act, given that banks are regulated by the Reserve Bank of India. The DFS had also pointed out that many State governments had already exempted not only public sector banks but also private sector banks from the purview of the Act.

S. Ravindaran, a senior advocate, said the private bank employees enjoy the benefit of working hours, holidays, leave benefits, overtime wages and speedy remedy against termination under the Tamil Nadu Shops and Establishments Act, while public sector banks are exempted from the purview of the Act. So private banks want a level playing field, he said.

Mr. Ravindaran pointed out that in 2004, the State government had exempted software industries in Tamil Nadu from the provisions of the Act in respect of opening and closing hours, daily and weekly hours and grant of holidays, among other conditions.

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Printable version | Aug 19, 2022 12:05:09 pm | https://www.thehindu.com/news/national/tamil-nadu/exempt-private-banks-from-shops-and-establishment-act-slbc/article65783558.ece