VOLUNTARY SEPERATION PAYMENT

as per RBI notification "As regards termination benefits in respect of VRS employees, banks should normally have made provision on actuarial basis. However, in view of the early retirement under the VRS, it is possible that the amount of termination benefits payable may be more than the provision made in this respect in the past for that employee. The excess of termination benefits payable over the provision held in this regard, unless expensed in the same year, can be treated as an extra-ordinary item and Deferred Revenue Expenditure."

so in your case it is deferred revenue expnditure. voluntary separation payments are deferred over the period. 

In your cash flow statement problem, voluntary separation payments is under asset side i.e. deferred revenue exp. but amortisation amount is "voluntary separation cost". but in your question it is directed to general reserve. other wise it is to be transferred to profit and loss a/c (extra ordinary item).