Professional Documents
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Ic 223 2024
Ic 223 2024
: IC/223/2024
ADMINISTRATION SECTION Date : 28/03/2024
Index : Others
GENERAL ADMINISTRATION WING Sub Index : Others
HO ANNEX : BENGALURU : 560004 Regulator : NA
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SYNOPSIS
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to landlord’s account for the rent payable for the month of April 2024 onwards i.e.
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April 2024 Month rent due in May 2024 and thereafter.
recovered from Employee.
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Any extra rent paid due to non-intimation of vacation of quarters, amount will be
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account. Off late we are receiving certain queries from Employees and Premises/ G A
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Section at CO/ RO regarding the subject. Hence, we are reiterating the guidelines to
sensitize the Branches/Offices.
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Officials of the Bank are eligible for Quarters facility at their place of work, subject to
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condition that they are not owning a house in his/her name OR a house in the name of
his/her spouse OR dependent child within the Municipal Corporation / Municipality /
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In case Bank owned quarters are not available, Officials are permitted to fix quarters on
Personal Lease. Personal Lease is substantiated by exchange of agreement between
Landlord/s and Officer. The rentals are reimbursed as per the actual rent fixed or the
eligible rental ceiling whichever is less.
As a systemic improvement measure, it is advised for payment of monthly rent for the
quarters on personal lease by Officers directly to the landlord’s account. Therefore,
Branches/Offices are strictly advised to take note of the above and credit the rental
reimbursement directly to landlord’s account for quarters allotted on personal lease for the
rent payable for the month of April 2024 onwards i.e. April 2024 Month rent due in May
2024 and thereafter. The guidelines will be applicable to all the personal leases in force.
It may be noted that since Bank is not entering into lease agreement and is only making
payment on behalf of the employee, TDS need not be deducted by Bank. Similarly, as the
rental reimbursement is treated as perquisite under Income tax and is accounted separately
as employee cost, GST under RCM is not applicable.
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In cases of Personal Lease Quarters due for expiry or otherwise, it is the responsibility of the
employee to inform the concerned Premises/G A Section of the Circle/Regional Offices,
regarding continuation or change of the personal lease quarters. Any extra rent paid due to
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non-intimation of vacation of personal leased quarters, the amount will be recovered from
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the Employee’s account. Also, the rental deposit paid to the landlord, either by credit to
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Employee’s account or direct credit to Landlord account, will be recovered from Employee
only.
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Confirmation regarding surrender of quarters & recovery of rental deposit availed at the
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Consolidated FAQs on the above subject is enclosed as annexure to the circular and the
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same shall be referred as an immediate tool. The FAQs are illustrative and not exhaustive.
Hence please be guided by the related circulars for detailed guidelines.
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RAMA NAIK K
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GENERAL MANAGER
Rent for the particular month shall be remitted to the Landlord’s account within 5th of
the succeeding month.
2. If the Lease is fixed for the amount higher than the eligible limit, what amount would be
transferred to the Landlords account?
Only the eligible limit amount will be credited to the Landlords account while the
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difference needs to be borne and dealt by the individual Officer at his/her end.
3. Can rent be credited to the account of Landlord’s Wife/Son/Other Relatives at the Land -
lord/s request?
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No. Rent is to be remitted to the account of Landlord/s only (with whom agreement is
entered into).
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4. Can rent be remitted to a Joint account where the landlord is also one of account holder?
Yes.
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5. Can the Regular/monthly Maintenance Charges in respect of Flats taken on lease be cred-
ited to the employees account?
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directly.
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6. If the agency has a rent agreement with the landlords to rent their building, can the rent
be payable to the agency?
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Yes, the rent can be paid to the agency if there exists an agreement between the
agency and the landlords to rent the building and receive rent amount in the bank
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Not required. Submission of rent receipts is discarded as the rent is directly paid to the
Landlords account.
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9. In case the existing owner does not agree to credit the rent to the account, can Officer
move to a different quarter during the pendency of lease?
11. Can the rent be paid to power of Attorney holder if the power of attorney is provided and
specifically mentions about rent credit to power of attorney holder.
Yes, rent can be paid in to the bank account of the Power of Attorney holder provided
such power of attorney specifically mentions the same with the details of the bank
account.
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12. In case of multiple Landlord’s, whether rent can be credited to individual account of any
one landlord with consent of other Landlord’s?
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Yes, in case of multiple Landlord’s, rent can be credited to individual account of any
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one landlord by obtaining due consent from other Landlord’s in writing.
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13. In case of multiple Landlord’s, whether rent can be credited to any one landlord’s joint ac -
count with other unrelated people with consent of other Landlord’s?
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Yes, in case of multiple Landlord’s, rent can be credited to any one landlord’s joint
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account with other unrelated people by obtaining due consent from other Landlord’s in
writing.
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