The Reserve Bank of India is likely to embark on a massive recruitment drive even as it proposes to come out with an early retirement scheme for employees across the cadre for the first time.

According to official sources, the ERS proposal which is yet to rolled out and formally finalised, will offer 60 days' salary and dearness allowance for every year left after taking ERS or for the whole of the remaining years of service, whichever is less.

However, the proposed scheme does not attract tax exemption usually attached to the voluntary retirement schemes.

If a VRS is granted exemption by the Central Board of Direct Taxes, the institution cannot go for fresh recruitment. In case of the RBI, it is believed that fresh recruitment will happen after the golden handshake.

The RBI has, of late, been hiring through direct campus recruitments and through the usual officers' grade written examination.

Sources said vacancy in some top management positions will pave the way for the promotion of middle management officials.

The RBI governor Bimal Jalan has already held one round of meeting with the RBI officers association, staff officers association, employees association, employees union etc.

While all segments have agreed to the ESS, they have asked for the amount to be compensated to be raised from 60 months of salary and DA to 75 days as the scheme does not attract tax benefits.

Further they have also requested the RBI to make the wage revision benefits due from November 1, 2003, available to the ERS optees.

As the proposal stands, it is difficult to find many takers, they said. Earlier, the RBI had come out with separation scheme in February 2001 which was only offered to the officer cadre.

Sources added that the purpose of the new scheme is to streamline staff strength in the Class III and Class IV levels and to add fresh blood in the officers' cadre, while offering an exit route to officers who do not see much career prospects with the bank.

Only those at or below 50 years of age and having 20 years of service will be eligible for the separation plan.