How can a Bank Clerk Become a PO

Bank clerk and probationary officer (PO) are the two most common banking jobs people apply for. Some people get hired as PO while the others get hired as a clerk. People tend to prefer the PO more than a clerk. It is possible for a clerk to become a PO, or in banking terms, it is possible for someone from the clerical cadre to get a promotion to the officer cadre.

The government had announced that from January 1st 2016 there would be no interviews for Central Government jobs in class-III and IV categories. The committee of secretaries chaired by Cabinet Secretary in its meeting held on November 13th had recommended discontinuation of interviews in PSU bank for junior level posts. It is expected that all PSU banks may discontinue interviews in the recruitment process for the clerical and Sub staff post as well as in the internal promotion process for clerical to Officer posts.

Eligibility criteria and Process

• All the candidates who wish to get promotion from clerical to officer in public sector banks need to apply for the promotion test and appear for the examination as well
• Candidates who are working as a clerk in any nationalised bank across the country would have to undergo their service for at least a period of 2 years in order to be eligible for promotion to office cadre.
• There are two channels for clerical to officer promotion: Normal channel and Merit channel.

Under Normal/Seniority channel

The employee has to qualify written exam and on the basis of his experience and seniority in his services of the bank, he can be selected as an officer. In this channelling process, no JAIIB (Junior Associate of the Indian Institute of Bankers) and CAIIB (Certified Associate of Indian Institute of Bankers) diploma are compulsory.

Under Merit/Fast Track Channel

2 Years minimum service as a clerk with a JAIIB and CAIIB diploma conducted by Indian Institute of Banking and Finance (IIBF) is must with graduate/post-graduate degree. Preparing for the diploma? The Entri App can help 🙂

Benefits on Clerk to Officer Promotion:

• Clerical employee becomes a confirmed employee as an officer from the first day of the promotion.
• Need to serve probation period only for one year as a PO as opposed to 2 years as a directly appointed PO
• Upon clearing JAIIB and CAIIB the candidates could get 3 increments (1 for JAIIB and 2 for CAIIB) and consequently their salary would be on the rise as well.
• Passing these exams also allows the candidates to secure the home state retaining power after they get promoted
• Eligible to get all officer cadre benefits from the first day of promotion and some benefits after completing their probation period
• Mostly employees after promotion to officer are retained in the home state for posting
• Eligible for loans for higher quantum-like staff housing loan for an officer is 50 lakhs as compared to clerks 30 lakhs and sub staff 20 lakhs

Allowances & Perks for Officers

• Dearness Allowance (DA): In Banks, DA is revised quarterly and is based on the CPI data as revealed by the government of India. The last revised DA for the quarter of November and December 2015 and January 2016 is 39.80% of the basic pay.
• Special Allowance: In the latest revision, a special allowance has been added to the salary structure of Bank PO. and it is 7.75%of the basic pay.
• House Rent Allowance (HRA): This varies according to Bank PO’s place of posting and can be 9%, 8% or 7% depending upon metros, big cities and other locations
• City Compensatory Allowance (CCA): This also depends on the place of posting and can be either 4%, 3% or 0%
• Leased Accommodation: This facility is available to Bank PO in place of HRA. At some places, banks provide official bank leased accommodation. This amount is not available as a cash component and will directly fo to the house owner – you have got leased.
• Travelling Allowance: Few banks provide fixed this whereas others allow reimbursement of petrol bills i.e. officer must own scooter, bike/car at the place of posting
• Newspaper Reimbursement: A fixed monthly amount is paid towards the cost of one newspaper
• Medical Aid: A fixed annual amount is paid by most of the banks
• Benefits under the New Pension Scheme

Hope that was informative enough and that you found what you were looking for, stay learning and have a nice day!