Calcutta High Court Upholds SBI's Mandatory Learning Rule, Says Officers Cannot Claim Allowances Without Updating Skills To Prevent Cyber Fraud
Observing that "in today's world, where cyber fraud interferes with the lives of individuals on a regular basis, the least that is expected from a bank is to ensure that adequate steps are taken to protect the account holders," the Calcutta High Court upheld the State Bank of India's policy linking reimbursement of officers' allowances to completion of mandatory learning courses.The Court...
Observing that "in today's world, where cyber fraud interferes with the lives of individuals on a regular basis, the least that is expected from a bank is to ensure that adequate steps are taken to protect the account holders," the Calcutta High Court upheld the State Bank of India's policy linking reimbursement of officers' allowances to completion of mandatory learning courses.
The Court further remarked that the petitioning officers "are not interested in advancing themselves with the mandatory learning" and held that employees who fail to update their skills cannot seek judicial enforcement of discretionary reimbursements while exposing the bank to risks of money laundering and technological fraud.
Justice Raja Basu Chowdhury dismissed a writ petition filed by the All India State Bank Officers Federation challenging SBI circulars issued in 2021 which made completion of mandatory learning a pre-condition for reimbursement of expenses such as conveyance, newspapers, internet, telephone, cleansing materials and labour charges.
The Court held that the reimbursements are not statutory service benefits but discretionary allowances, and that the Bank is justified in linking them to continuous skill upgradation, particularly in light of increasing cyber security threats and regulatory compliance obligations.
The Court observed: "Further in today's world, where cyber fraud interferes with the lives of individuals on a regular basis, the least that is expected from a bank is to ensure that adequate steps are taken to protect the account holders. In the instant case, the members of the petitioners are not interested in advancing themselves with the mandatory learning."
It also held that officers who choose not to complete mandatory learning cannot claim parity with those who have updated themselves, nor can they seek enforcement of a "non-existent right" to reimbursement, since the allowances do not form part of the State Bank of India Officers' Service Rules.
Case: All India State Bank Officers Federation & Ors. Versus The State of Bank of India & Anr
Case No: WPO 1278 of 2022