New Delhi: People working with banking sector have a reason to celebrate this festive season. Around 14 lakh bank employees will get a festival bonanza this season as the Indian Banks Association (IBA) has on Tuesday asked all the banks – both PSUs and private – to pay one month’s salary as advance to their respective employees ahead of Diwali.

“Workmen staff and officer employees may be advised by the concerned banks that the ad-hoc payment is being made to them as a gesture of goodwill by the management and the amount being paid now will be adjusted against the actual arrears payable after the outcome of the ongoing wage negotiation talks,” VG Kannan, Chief Executive, IBA, said a statement.

“Banks may be advised to ensure that all statutory deductions like TDS be necessarily made as per the prevailing rules while making payment. Banks may accordingly take the necessary action as above with the approval of the competent authority,” Kannan said further in the statement.

As per the notification from the IBA, employees, who have joined the service on or after November 1, 2017, and up to March 31, 2019, will be paid an amount equal to 15 days salary.

However, the IBA stated that the salary hike negotiations with the United Forum of Bank Unions (UFBU) have not been completed and will require more time for this.

The announcement in this regard from the IBA comes at a time when the wage negotiation talks between banks and their employees are going on over the last two years. The wage revision of bank employees and officers is due since November 1, 2017. The notification from the IBA comes after 30 rounds of discussions with employee’s unions on wage revisions.

Founded on September 26, 1946, the Indian Banks Association started as a representative body of management of banking in India based in Mumbai. With an initial membership representing 22 banks in India in 1946, the IBA at present has representatives of 237 banking companies operating in the country. It was established for development, coordination and strengthening of Indian banking, and assist the member banks in various ways.