How this is worked out
Your gross pay grows each year by prices and by the real raise. Three SIPs are run side by side: one fixed and never raised, one raised with prices only, and one under the raise rule. Each earns the return you enter, and the result is shown in today’s money and in rupees of the day. This is the working in Chapter 20 of The Banker’s Money Book.
Questions bankers ask
What is the raise rule?
Two standing instructions. On every DA revision, raise your SIP by the same percentage as your gross pay, so it keeps its value. On every increment, exam increment, stagnation increment or promotion, add a third of the rise in gross pay to the SIP, and live on the other two-thirds.
Why does it make such a difference?
A SIP set once and never raised shrinks every year as prices rise. A banker’s pay rises on known dates, so tying the SIP to them grows it with your career, without a cut in what you spend.
Which pay path should I choose?
An officer’s career follows the book’s example: JAIIB and CAIIB early and promotions in years 6, 11 and 16, so pay grows fast early and slowly later. For a clerk, or if you do not expect those promotions, choose a steady real raise: about 2% to 3% a year beyond prices is typical without promotions.
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Indicative figures for planning. They follow the 12th Bipartite Settlement and 9th Joint Note (8 March 2024), IBA’s DA circular of 2 November 2026 and the Income-tax Act, 2025, as on 12 November 2026. Your bank’s payslip, service regulations, circulars and Form 16 prevail. Bankers Pioneer Academy is independent; not affiliated with IBA, IIBF, the Reserve Bank of India or any bank. Nothing you type here leaves your device.