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Scheme for extending legal and financial support to Officers of the bank Against whom motivated false complaints have been made By people / agencies outside the bank (Reference HRDD Circular No. 357 dated 13.11.2006) Motivated false complaints by people / agencies outside the bank, having grudge or otherwise against the Officers of the bank, damages the image of the Officer concerned and causes trauma to the Officer thereby preventing him from performing to his potential. With a view to mitigate this situation it has been decided to introduce a scheme for extending legal and financial support to the Officers of the bank against whom motivated false complaints have been made by people / agencies outside the bank. The scheme provides for extending legal and financial support to Officers of banks who are permitted to initiate legal action against people / agencies who with malafide intention, have lodged a motivated false complaint / made baseless allegation / passed derogatory remarks against the banks Officer on matters arising out of bonafide execution and discharge of official duties. A detailed scheme in this regard is enclosed. This scheme has been approved by the Board of Directors in the meeting held on 30.10.2006. This scheme shall come into force with immediate effect ANNEXURE I Scheme for extending legal and financial support to Officers of banks against whom motivated false complaint has been made by people / agencies outside the bank 1. Objective: To enable Officers to initiate legal action in India against outsiders / private parties who with a malafide intention make baseless allegations, pass derogatory remarks, lodge motivated false complaints on matters arising out of bonafide execution of banks works. This scheme shall not be applicable in case of a complaint / allegation made by an employee of the bank. 2. Applicability: This scheme shall cover all Officers on the regular rolls of the bank. It shall also be applicable in case of Officers on deputation within India to Joint Venture and Subsidiaries of the bank. 3. Definition : In these rules, unless the context otherwise requires :

-21. Initiate legal action shall include defending against legal action initiated by outsiders / private parties with malafide intention on matters arising out of bonafide execution of banks works. 2. Outsider / private party means any outsider other than a Government Agency such as CBI, CVC etc. 3. A motivated false complaint / communication shall mean a written complaint / communication other than anonymous or privileged. For the purpose of this scheme a privileged complaint / communication shall mean any written complaint which is protected under law. 4. A baseless allegation / a derogatory remarks shall mean so only if it is in writing. 5. Litigation expenses shall mean court fee and other related miscellaneous expenditure, advocate fee, TA, DA and accommodation charge as per entitlement. 6. Baseless allegation, derogatory remarks, motivated false complaints against Officers of the bank by an outsider / private party for the purpose of this scheme shall herein after be referred to as the Cause of Action. 4. Procedures 1. If an Officer desires to initiate any legal action in respect of any Cause of Action, he / she may put up the facts along with the relevant documents, seeking permission to initiate legal action through proper channel. 2. All such proposal shall be placed before a Committee at Head Office consisting of one member each of the level of Chief General Manager/ General Manager from Law / HRD / Credit / Investment and Inspection & Audit. The Convener of this Committee shall be the representative from HRD Division, Head Office not below the rank of Deputy General Manager. The Committee shall examine the gravity of the Cause of Action and recommend for grant or rejection of request for permission to pursue legal action and for reimbursement of litigation expenses to the competent authority within a period of 15 days on receipt of such proposal 3. The competent authority for Officers up to Scale V shall be the General Manager. For Officers placed in Scale VI & VII (Dy. General Managers and General Managers) the competent authority shall be Executive Director 4. Once the permission is granted, the Law Division, Head Office will identify a suitable advocate in each case. The fee and other charges payable shall be as per the scheduled rates for hiring of advocate, as prescribed by the bank. The Officer concerned shall execute a deed of undertaking as per the format enclosed, agreeing to comply with the provisions of this scheme.

-35. Since Chairman & Managing Director and Executive Director are more susceptible to slandering, wild allegations made by persons both inside and outsider the bank, they would be competent to decide and file a suit (criminal / civil or both) against the individual(s) who has made such allegations / complaints against them. 5. Other terms and conditions 1. In the event of court orders for payment of any compensation in favour of the Officer concerned, the amount so received shall be retained by the Officer concerned after payment to the bank, of the amount spent by the bank in connection with the case. 2. The Officer concerned shall pursue the case with due diligence and in the event Officer concerned retires before the culmination of the case, even then the Officer concerned shall pursue the case till its conclusion at banks cost, as mentioned above. 3. In the event of employment of the Officer concerned with the bank comes to an end for whatever reasons except otherwise than by superannuation or on health grounds, the bank shall not provide the facility under the scheme any further. 6. General 1. The decision of the competent authority for granting permission to initiate legal action shall be final and binding. 2. The bank reserves the right to amend, modify or withdraw this scheme at any time. ***************** ANNEXURE II

Deed of undertaking

This deed executed on _________ day of ______________ by (name and designation) ____________________________ (hereunder referred to as the said Officer) and having permanent residence at _______________________________________________. IN FAVOUR OF Punjab National Bank and having its Head Office at 7, Bhikhaiji Cama Place, New Delhi (hereinafter referred to as the Bank).

-4WHEREAS 1. Bank has formulated a scheme under its circular No. ___________ dated ___________ (hereinafter referred to as the said scheme which expression shall include amendments / modifications thereto, if any) under which an Officer of the bank is entitled to be paid or reimbursed expenses incurred in connection with legal action initiated in accordance with the said provisions of the said scheme. 2. ___________________ has made a baseless allegation against the undersigned in respect of __________________. Since this baseless allegation affects me and it is likely that it could harm the image of the bank, I am desirous of initiating legal action against the said ____________ and avail assistance from the bank under the said scheme for this purpose. 3. Bank has agreed to pay or reimburse the expense in connection with the legal proceedings proposed to be initiated by me as above, in accordance with the provisions of the said scheme. 4. Under the said scheme, I am required to execute an undertaking in accordance with the provisions of the said scheme. Accordingly, I have executed this Deed of Undertaking as hereinafter appearing. NOW THIS DEED WITNESSETH AS FOLLOWS: 1. I have read the above said scheme and hereby agreed to bound by the provisions of the said scheme. 2. In the event of any damages, compensation and / or costs being awarded by the court at any time in my favour in the legal action initiated by me, I agree to pay back to the bank, whatever amount has been spent by the bank in connection with the case and balance amount, if any, shall be retained by me. 3. I hereby agree and undertake to pursue the above case diligently till the case reaches its finality (including the appeal, if any, so advised by the bank). IN WITNESS WHEREOF the undersigned has executed this undertaking cum indemnity as ___________________ on the date mentioned hereinabove. Signature of the Officer The following amendment has been made in the above guidelines: (Amendment vide HRDD Circular No. 584 dated 05.11.2009) The scheme for extending legal and financial support to officers of the Bank against whom motivated false complaints have been made by people / agencies outside the Bank, as approved by the Board of Directors of the Bank in its meeting held on 30.10.2006, stands circulated vide HRDD Cir. No.357 dated 13.11.2006. 2. The Board of Directors of the bank in its meeting held on 29.10.2009 has inter-alia, amended the aforesaid existing scheme to extend its applicability to the officers retired from the Bank against whom such complaints have been made only in respect of bonafide execution of Banks work while in service. -o-o-o-o-