On 21 October 2008, employees of the Reserve Bank of India went on a mass casual leave to protest against the circular issued by the Government of India, making amendments in the pension scheme for the RBI employees. According to the United Forum of Reserve Bank Officers and Employees, `the unilateral withdrawal` of the scheme of up-dation of pension would reduce the monthly pension of RBI retirees.

In 2003, the bank had updated the pension for employees who retired before November 1997, which brought their basic pay in alignment with the basic pay prevalent at that time. In August 2006, the government had instructed RBI to withdraw the benefit, but due to the timely interference of the then RBI governor, YV Reddy, the decision was revoked. But, on 10 October 2008, based on the instruction of the government, a circular was issued declaring that the pension for the RBI staff would not be revised when there is a pay revision.

When the revision of pension of the employees of National Bank for Agriculture and Rural Development (NABARD) was discussed, NABARD had informed the government that it follows the RBI practices for revision of pay and pension. This had the government reconsider the pay-pension policy, resulting in the decision to take away the benefits of the RBI employees. 

Although at present, the non-updation applies only to those who retired before November 1997, the Forum felt that, within no time, it would be applicable to the current staff as well. The proposed change is in contrast to the practice followed for government employees. The pension of government employees is revised after each pay revision, which usually takes place once every five years.

The United Forum of Reserve Bank Officers and Employees has demanded that pension be updated after every pay revision, family pension be granted at the rate of 30 per cent without a ceiling, commutation of pension at an enhanced rate be continued and the option of pension be thrown open to those who had not opted for it. The RBI has approximately 22,000 employees at present, of which 20,000 have opted for pension. The rest have opted for the contributory provident fund scheme.

As part of the nationwide protest, the employees expressed their resentment at the management not listening to their pleas and refusing to enter into a dialogue on the issue with the Forum. The one-day protest brought payment and settlement operations to a near standstill across the country. All departments of the RBI countrywide participated in the strike, which affected cheque clearing, electronic clearance operations, real time gross settlement, and forex transactions. However, in some centres, where the clearing houses are run by banks, clearing operations took place. As the central bank`s trading platform was closed, no trading in government securities happened.

The Forum leaders, who addressed the protestors, criticised the bank`s decision to amend the pension benefits that has resulted in substantial reduction— ranging from Rs 1,000 to Rs 4,500 in the employees` pension package.