The five associate banks of SBI had over 70,000 employees across the country. They were absorbed in the branches of parent SBI. Many of them also took voluntary retirement. The five associate banks of SBI had over 70,000 employees across the country. They were absorbed in the branches of parent SBI. Many of them also took voluntary retirement.

Hundreds of the employees of erstwhile associate banks of State Bank of India (SBI) may have to return the “overtime compensation” paid for the extra hours they worked during the demonetisation days.

In an internal circular to its zonal offices, SBI has said the associate banks should have settled the compensation before the merger and the parent SBI is not liable to pay up the overtime money to the former employees of associate banks. While State Bank of Patiala, State Bank of Hyderabad, State Bank of Mysore, State Bank of Travancore and State Bank of Bikaner & Jaipur merged with SBI on April 1, 2017, demonetisation of Rs 500 and Rs 1000 notes happened from November 10 to December 30, 2016.

“The claim related to the period prior to the merger of e-Abs (erstwhile associate banks) should have been dealt by e-Abs at the material time and we have no record of any commitment to pay the same,” the SBI circular said. SBI said the instruction issued earlier this year for payment of compensation was only for employees of parent SBI and not for employees of five associate banks.

When contacted, SBI officials were not available for comments. “The contention of the SBI is that associate banks should have paid compensation and settled all claims before the merger in April 2017. This did not happen. SBI has now asked the employees who have claimed overtime to return it,” said an official.

According to the official, employees of the associate banks claimed the overtime compensation mostly in the Mumbai region.

The five associate banks of SBI had over 70,000 employees across the country. They were absorbed in the branches of parent SBI. Many of them also took voluntary retirement.

During the demonetisation period, bank employees had put in extra working hours for nearly two months to accept demonetised notes from customers across the country. SBI got the maximum amount as deposits during the period.

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