The central bank has stated that full-time employees who have been considered for promotion and superseded twice in existing grade or post can opt for its `Early Severance Scheme' (ESS), which opened on the 13 of last month, and is to remain operative until further notice.

The RBI has a staff strength of around 34,000 employees, and the objective of the ESS, said the central bank "is to provide employees who have been superseded more than once with an incentive to take voluntary retirement... and, thereby, reduce the degree of frustration or demotivation due to their non-selection for promotion."

The scheme offers a financial incentive to those employees who wish to voluntarily retire in the wake of repeated non-selection for promotion under regulations 26 (3) and 26 (3A) of the RBI (Staff) Regulations (1948). Under the regulation, employees who have either crossed 50 years of age or completed 20 years of service can opt to voluntarily retire.

Employees whose applications are accepted will become eligible, in addition to the existing benefits admissible on voluntary retirement, to a lump sum ex-gratia payment amounting to 24 months salary or the salary for the number of months of services left, whichever is less.

For the purpose of computing the ex-gratia amount payable under the scheme, the remaining months of services will be reckoned as on the date of retirement of the employee. Date of retirement will be determined by the bank after taking into consideration the due notice period or its waiver. Fraction of a month, if any, of remaining services will be ignored.

Ex-gratia will be calculated on the basis of the last salary drawn by the employee as on the date of his retirement.

The ex-gratia amount under the scheme shall be paid within 30 days from the date of retirement of the employee.