SBI VRS scheme 2020: Who is eligible, compensation and other details you need to know

India's largest lender State Bank of India has its new Voluntary Retirement Scheme (VRS) for employees. 

The scheme named Second Innings Tap will be opened for three months, from December to January, every year, and employees who have completed 25 years of service and are 55 years of age will be eligible for the same. If 30 percent of the eligible employees opt for the new scheme, the bank expects net savings of around Rs 2,170.85 crore.

Also Read: SBI introduces new VRS scheme

As of March 2020, the country's largest lender had nearly 2.5 lakh employees on its rolls. According to PTI sources, a draft scheme for VRS has been prepared and board approval is awaited. In 2001, the bank had announced VRS with the objective to optimise human resources. 

Eligibility:  

A total of 11,565 officers and 18,625 staff of SBI are eligible for the new VRS plan. A staff member retired under the scheme will be eligible for engagement or re-employment in the bank after a cooling-off period of two years from the date of retirement.

Salary: 

The staff member whose request for retirement under VRS is accepted will be paid an ex-gratia amounting to 50 percent of salary for the residual period of service (up to the date of superannuation), subject to a maximum of 18 months' last drawn salary.

Other benefits: 

Gratuity, pension, provident and medical benefits will be given to employees seeking VRS.