Banks and financial institutions (BFIs) expressed their reservations on Social Security Fund (SSF) despite the government and central bank’s direction last week on mandatory enrollment.
The members of the Nepal Financial Institution Association (NFIA) – an association of people working in banks and financial institutions – threatened to launch protests, if the central bank forces then and does not roll back its direction of mandatory participation in the scheme.
“The regulatory body has issued a circular without consulting BFIs,” according to a press note issued by the association. “It is not under the jurisdiction of the central bank to direct BFIs to join the scheme,” the press note reads, adding that financial institutions will not join the social security programme as it does not ensure basic rights of workers in the financial sector. “We will be compelled to protest, if central bank does not roll back its direction.”
They have been demanding that the government include insurance policy for dependent family members of the banking staffers. Likewise, they are also demanding that mandatory registration of staffers in the Social Security Fund for those who had joined the institution after the fund has been established.
The government fixed November 30 deadline for the private sector to get listed in the scheme, which aims at providing pension to retired employees of the private sector as well. Though, government is planning to extend the deadline to convince more private sector institutions – especially BFIs – in the scheme, the private sector employees are not much interested in joining the scheme.
Meanwhile, commercial banks have also expressed their concern in the scheme. They, though, claim that the scheme is good, the bank employees are not interested as they think they are not ensured of the basic facility that they have been getting.
“We are already registered at the Employees Provident Fund (EPF) and Citizen Investment Trust (CIT),” the association said, adding that they are not interested in joining the scheme as they are not ensured of facilities that they have been already getting through EPF and CIT.
Likewise, Nepal Bankers Association (NBA) is going to held meeting with the central bank to rely their concerns. Some 131,577 workers and 11,797 employers have been listed in the social security scheme till date.
The members of the Nepal Financial Institution Association (NFIA) – an association of people working in banks and financial institutions – threatened to launch protests, if the central bank forces then and does not roll back its direction of mandatory participation in the scheme.
“The regulatory body has issued a circular without consulting BFIs,” according to a press note issued by the association. “It is not under the jurisdiction of the central bank to direct BFIs to join the scheme,” the press note reads, adding that financial institutions will not join the social security programme as it does not ensure basic rights of workers in the financial sector. “We will be compelled to protest, if central bank does not roll back its direction.”
They have been demanding that the government include insurance policy for dependent family members of the banking staffers. Likewise, they are also demanding that mandatory registration of staffers in the Social Security Fund for those who had joined the institution after the fund has been established.
The government fixed November 30 deadline for the private sector to get listed in the scheme, which aims at providing pension to retired employees of the private sector as well. Though, government is planning to extend the deadline to convince more private sector institutions – especially BFIs – in the scheme, the private sector employees are not much interested in joining the scheme.
Meanwhile, commercial banks have also expressed their concern in the scheme. They, though, claim that the scheme is good, the bank employees are not interested as they think they are not ensured of the basic facility that they have been getting.
“We are already registered at the Employees Provident Fund (EPF) and Citizen Investment Trust (CIT),” the association said, adding that they are not interested in joining the scheme as they are not ensured of facilities that they have been already getting through EPF and CIT.
Likewise, Nepal Bankers Association (NBA) is going to held meeting with the central bank to rely their concerns. Some 131,577 workers and 11,797 employers have been listed in the social security scheme till date.
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