AIUCBEF Writes to MD & CEO on Duties of SCSA (Cash) in Gold Loan Operations and Key-Holding Responsibilities – Strict Compliance to SOPs
Date: 18 August 2026
Ref No: AIUCBEF/MD &CEO /163/23-26
The All India UCO Bank Employees Federation (AIUCBEF) has written to the Managing Director & Chief Executive Officer (I/C), UCO Bank, highlighting severe hardships faced by Senior Customer Service Associates (SCSA – Cash) and Special CSAs regarding Gold Loan operations and key-holding responsibilities.
The letter draws attention to the pressure on clerical staff, particularly in branches with single clerical staff, to act as joint custodians of the Safe Vault of Gold Ornaments. They are compelled to sign documents like Annexure D and handle safe-keeping without physical association in the process, often staying late, while facing risks of bypassing SOPs under business pressure.
Despite repeated representations over the last three years at Zonal and Apex levels, and assurances of corrective steps, no meaningful action has been taken to relieve clerical staff from custodian duties.
In order to safeguard the Bank’s interests and protect members from future accountability, charge sheets, and financial liabilities, the Federation will advise all members to ensure 100% strict and uncompromising compliance with the SOP guidelines laid down in the Master Circular dated 30.3.2026, without any deviations. This position was conveyed during the IR (Policy) & GR meetings on 15th July 2026.
Specific areas of strict adherence:
1. Absolute Joint Custody & Prohibition of Key Delegation (Chapter 3, Clause 3.1 & 3.2): Safe vault to be operated only with both custodians physically present. No informal key handover.
2. Immediate Transfer to Safe Post-Transaction (Chapter 1, Clause 1.2.5 & Chapter 3, Clause 3.1(e)): Gold packets to be verified, sealed, and transferred to vault immediately after appraisal – no accumulation at counters.
3. Fresh Appraisal for Loan Renewals (Chapter 1, Clause 1.2.8): Every renewal requires physical extraction, fresh appraisal in presence of customer and custodians, and resealing – no system-level “paper renewals”.
4. Penalty Shield for Delay in Release of Securities (Chapter 1, Clause 1.2.11): Members to formally document instances where release is delayed due to non-availability of joint custodian to avoid personal liability for the ₹5,000 per day penalty.
5. Payment only after credit to borrower’s account.
The Federation acknowledges that strict adherence may cause disruption in counter/customer service but emphasizes it is necessary to protect members and the Bank from disciplinary action for non-compliance with HO guidelines. The contradictory position of signing Annexure D (entailing accountability) while clerical staff are outside the Accountability Policy is also highlighted.
The letter requests the MD & CEO to take up these views with Head Office, advise all branches to ensure no breach of HO procedures, and provide adequate Gold Safe capacities, functional CCTV coverage for safe rooms, and uninterrupted supply of tamper-proof packets.
Full Original Letter Text:
To
ALL INDIA UCO BANK EMPLOYEES FEDERATION
(AFFILIATED TO AIBEA) REG. NO. 3489/CNI
Ref No. AIUCBEF/MD &CEO /163/23- 26
The Managing Director & Chief Executive Officer (I/C)
UCO Bank
Head Office, Kolkata
10, BTM SARANI, 2nd Floor, KOLKATA – 700001
REGD OFFICE: CHENNAI(UCO Bank, 328, Thambu Chetty Street, Chennai-600001) Email ID : AIUCBEF.IN@GMAIL.COM/ STAFFUNIONWB@GMAIL.COM
Mob No. 9830018941/7003608652
Dated 18/08/2026
Dear Sir,
Sub: Duties of SCSA (Cash) in Gold Loan Operations Key Holding Responsibilities vis-a-vis practical problems in complying with the procedures laid down in the Master Circular dt 30.3.2026.
We wish to draw your immediate attention to the severe hardships and undue administrative pressures being
faced by our clerical staff, specifically the Senior Customer Service Associates (SCSA – Cash) and Special
CSAS, regarding Gold Loan operations and key holding responsibilities.
You may be aware that in different times from our state level unions and from our ALL INDIA UCOBANK
EMPLOYEES FEDERATION, it was being represented both at the Zonal level and at the Apex level, in the
last three years, on the CSAs /Senior CSAs/Special CSAs being exposed to severe risk due to extreme
pressure mounted on them under the pretext of “Joint Custodians” with regard to the process of handling
Gold Loans, particularly in the context of most branches having single clerical staff. They are pressurised to
sign certain documents like Annexure D and handle safe keeping of the gold ornaments in safe without
enabling them to associate with the process physically. It is also not out of place to make a mention about
they being compelled to stay late to complete the days routine particularly with regard to gold loans and safe
keeping of the gold ornaments in safe vault with the other custodian.
Thus, time and again, we have been drawing the attention of the Management about how due to severe
manpower shortages and high business targets at the branch level, our members, particularly Senior
Customer Service Associates (SCSA – Cash) who act as Joint Custodians are subjected to immense
administrative pressure to bypass standard operating procedures (SOP). This is obviously seen to expedite
gold loan processing and strengthen the gold loan portfolio. In view of this constant pressure and increasing
volume of Gold Loans we have been demanding to revisit the entire procedures so as to relieve the Clerical
staff from being CUSTODIAN OF SAFE VAULT OF GOLD ORNAMENTS to enable them to attend to regular
work and counter service without interruption. Though we were repeatedly assured of appropriate corrective
steps, till now no meaningful steps appear to have been taken.
While we reiterate our demand once again for relieving the Clerical staff from being custodian of Safe vault of
Gold ornaments, We are to convey to you that in order to safeguard the Bank’s interests and protect our
members from future accountability, charge sheets, and financial liabilities, we will be constrained to advise
all rank and file of members to ensure 100% strict and uncompromising compliance of the SOP guidelines
without any deviations. This was also duly conveyed to HO during the recently held IR(Policy) & GR meetings
held on 15th July, 2026.
Specifically in this backdrop and all sorts of persuasive efforts failing with the Retail department, H.O we will
be left with no other option but to advise our members to strictly adhere to the following clauses explicitly
mandated by the Head Office:
1. Absolute Joint Custody & Prohibition of Key Delegation: Reference: Chapter 3, Clause 3.1 &
3.2 (Page 18-20)
The SOP clearly states that Gold ornaments to be kept in the safe under the joint custody of the Branch
Head/Asst. Branch Head and the Cash Custodian
(Manager-Cash/Officer/Senior Customer Service Associate
(Cash). Furthermore, Clause 3.2 (g) dictates: “The authorized joint custodians should not hand over their
keys freely to the other officers… none of the joint custodians should delegate their powers to any other
person to operate the jewel safe during the period of his/her custody.” In most branches in view of giving fast customer service Officers are getting the keys of SCSA and
accessing Jewel safe singly or along with other officer without the presence of SCSA.
Hence Our members will not hand over safe keys informally and the safe vault will only be operated
with both custodians physically present irrespective of any possible disruption in the counter
service.
2. Immediate Transfer to Safe Post-Transaction Reference: Chapter 1, Clause 1.2.5 (Page 4) & Chapter
3, Clause 3.1 (e) (Page 19): “Immediately after lodgement of the gold ornaments by the borrower and
appraisal completed, custodians have to cross verify the jewels, get it sealed and the packet containing
ornaments should be transferred to the gold safe after the details are entered in the Jewellery Movement
Register.”
Hence Our members will avoid encouraging gold packets to get accumulated at the counters. Upon
completion of the appraisal process they, being joint custodian, will verify the gold ornaments based
on the appraiser’s report, get it sealed and immediately transfer packets to the vault following the
strict protocol, which may naturally impact the regular/routine counter transactions.
3. Fresh Appraisal for Loan Renewals
Reference: Chapter 1, Clause 1.2.8 (Page 7): For the renewal of Gold Loans, “Fresh appraisal of Gold to be
done, as per existing guidelines, even if no change in ornaments.” Hence our members will restrain themselves from entertaining System-level “paper renewals”. Every
renewal will require the physical extraction of the packet from the safe, fresh appraisal by the
appraiser in the presence of the customer and all custodians, and resealing done immediately as per
the procedure, mindless of consequential effect on the customer service.
4. Penalty Shield for Delay in Release of Securities
Reference: Chapter 1, Clause 1.2.11 (Page 8): The Bank is required to compensate the borrower “at the
rate of 5,000 for each day of delay” in releasing pledged collateral beyond 7 days of full repayment.
Hence to protect themselves from being held liable for this penalty, our members may not be found
fault if they formally document instances where they are unable to return gold packets to customers
due to the non-availability of the Branch Head or the other joint custodian and if they resist release of
Jewels without the presence of other custodian.
5. Similarly clerical staff will make sure that payment is facilitated only after the loan amount is
credited to the borrower’s account.
We are aware that strict adherence to these Head Office guidelines may create some difficult
situations in the branches, but looking to the interest of the employees and the Bank and insulate
them from being subjected to possible disciplinary action for failing to follow the procedures
prescribed by the above said HO communication, we are unable to find any other means to protect
the interest of our members. The most contradictory part remains where signing of document (
Annexure D ) entails for Accountability but Clerical Staff are out of the purview of the Accountability
Policy of the bank. We hope that you will not disagree with our views and our demand and avoid
putting the blame on the clerical staff for their strict compliance with these rules as they are laid
down by the bank notwithstanding that it may result in unavoidable disruption in the routine
counter/customer service.
We seek your immediate and needed steps, suitably taking up with Head Office of our above said views and
decisions besides advising all the branches to ensure that there is no breach in HO laid down procedures and
clerical staff are not forced or encouraged to discharge their responsibilities against the spirit of HO policy
guidelines.
Furthermore, we request your immediate intervention to ensure branches are provided with
adequate Gold Safe capacities, functional CCTV Coverage for safe rooms, and uninterrupted supply of
tamper-proof packets.
We shall remain thankful for your understanding and cooperation.
Thanking you,
Yours sincerely,
Partha Chanda
General Secretary
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