In a key development, the Kerala High Court directed Union Bank of India to review the representation submitted by UBOA Kerala State concerning the perquisite tax on concessional loans. UBOA Kerala raised important concerns regarding:

• Retrospective Imposition of Perquisite Tax: The tax was imposed on terms originally agreed upon when officers took concessional loans, making the charge unfair.
• Inconsistent Handling Across Banks: The association pointed out that other public sector banks, such as Canara Bank, had absorbed the perquisite tax, which created inconsistencies in how the tax was applied across the banking sector.
• Bank’s Review & Response: The court ordered the management of Union Bank of India to review and respond to UBOA Kerala’s concerns within 14 days from the date of the court’s order.