The Division Bench of the Calcutta High Court, while disposing of a petition filed by certain officers of the State Bank of India, examined the validity of the bank’s internal directive that makes the payment of certain allowances contingent upon the successful completion of prescribed cyber‑security training modules. The petitioners contended that the condition imposed by the bank amounted to an unreasonable restriction on their entitlement to allowances and was therefore ultra vires the service rules governing their employment.
The Court began its analysis by noting the prevailing threat landscape in the banking sector. It observed that “in today's world, where cyber fraud interferes with the lives of individuals on a regular basis, the least that is expected from a bank is to ensure that adequate steps are taken to protect the account holders.” This observation formed the factual matrix against which the reasonableness of the bank’s condition was evaluated.
On the question of whether the bank could lawfully link allowance reimbursement to training completion, the Bench held that the condition did not constitute a penalty or a forfeiture of vested rights. Instead, it characterised the requirement as a procedural prerequisite designed to ensure that officers possess the necessary competence to safeguard customer data and prevent fraudulent transactions. The Court emphasized that the bank, as a custodian of public funds, bears a statutory and fiduciary duty to adopt preventive measures against cyber‑crime, and that imparting regular training to its personnel is a legitimate exercise of that duty.
The petitioners’ argument that the condition violated the principle of equal treatment was addressed by the Court, which pointed out that the learning programme is uniformly applicable to all officers occupying similar grades and functions within the bank. The Bench found no evidence of discriminatory application and concluded that the rule operates on a neutral basis, thereby satisfying the test of equality before the law.