Lok Sabha Question No. 147 (UNSTARRED), answered on 2022-07-18
Subject: Indian Banks’ Association
Ministry: FINANCE
Asked by: Manish Tewari

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## UNSTARRED QUESTION NO. 147

TO BE ANSWERED ON 18 th  JULY, 2022 (MONDAY) / ASHADHA 27, 1944 (SAKA)

## Indian Banks' Association

## 147.  SHRI MANISH TEWARI:

Will the Minister of FINANCE be pleased to state:

(a) whether Indian Banks' Association (IBA) with over 200 members undertaking and indulging in acts of gain is a registered entity;

(b)  if  so,  whether  these  'acts  of  gain'  being  undertaken  by  the  IBA  are  violative  of  the  explicit mandates  of  Section  11(2)  of  the  Indian  Company  Act,  1956  and  Section  464  of  the  Indian Companies Act, 2013 and if so, the details thereof;

(c) whether IBA is the approving authority for Transport Operators for discounting of their Transport Receipts  by  Public  Sector  Banks  and  is  charging  Rs.177000/  for  each  approval  from  over  700 approved transport  operators  and  if  so,  whether  Finance  Ministry  has  authorized  IBA  to  do  this business and if so, the details thereof;

(d) whether Whole Time Directors of PSBs have been permitted by Finance Ministry to hold exofficio posts in IBA as per Section 14 of their Terms-of-Appointment and if so, the details thereof; and

(e) whether IBA is competent to sign any contract/settlement with Bank Employees Unions' under Indian Contract Act,1872 and if so, whether this is being done on directions of Finance Ministry and if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (DR. BHAGWAT KARAD)

(a) to (e): Indian Banks' Association (IBA) has informed that it is an un-incorporated, independent association of its members, not engaged in any business for the sole purpose of profit and gain.

Further, IBA has informed that, as per the mandate given by its member banks, it processes applications of transport  operators and advises their names to banks for inclusion in their list of empanelled transport operators. It is at the sole discretion of the member banks whether or not to accept IBA's advice for inclusion of a transport operator in its empanelled list of transport operators. IBA has also informed that it charges, for a period of three (03) years, Rs. 1,50,000/- + GST (onetime application fee of Rs.45,000/- plus processing fee of Rs.35,000/- p.a. + GST) for new cases and Rs.1,05,000 + GST for renewal cases to cover the cost and other expenses involved in the processing of applications, which includes processing of various financial parameters, assess credit worthiness,  loan  repayments,  account  operations,  banker's  confidential  report,  RTO  related compliances, vehicle ownership, vehicle fitness, verification from Vahan site, checking MCA records, scrutiny of complaints, if any, documentations, vehicle tax payment status, routine permits, agencies, etc.

As per inputs provided by IBA, there are no ex-officio posts in IBA. Further, based on the specific  mandate  given  by  banks,  IBA  facilitates  wage  negotiation  between  banks  and  their employees.