Monday, July 11, 2011

RBI orders to Banks for delay in Pension Payments

Dear Veterans,
I wish to bring to your notice to the various circulars issued by the RBi regarding payment of pension by the banks. i would like to draw your attention particularly to the clause whereby you are entitled for bank rate plus 2% for all delayed payments by the the banks of your dues. You may like to visit this web site and update yourself on the matter.
Pension Payment to Central/ State Govt. Pensioners by Agency Banks-Delay
(Ref.DO.No.CSD.CO/8793/13.01.001/2009-10 dated April 09, 2010, DGBA.GAD.No.H- 46/45.01.001/2010-11 dated July 2, 2010 and DGBA.GAD.No.H- 6212 & 6213/45.01.001/2010-11 dated March 11, 2011)- click here
Reserve Bank of India is receiving several complaints from the pensioners alleging inordinate delay in disbursing the revised pension and arrears. Position was reviewed by RBI and the agency banks have been instructed as under:
  • Pension paying banks should compensate the pensioner for the delay in crediting the pension/ arrears thereof by paying compensation at Bank Rate plus 2% penal interest for the delay after the due date and the compensation shall be credited to the pensioner's account automatically without any claim from the pensioner on the same day when the bank affords credit for revised pension/ pension arrears, in respect of all delayed pension payments made since October 1, 2008.
  • Pension paying banks have been requested to put in place a mechanism to obtain immediately the copies of pension orders from the pension paying authorities directly and make payments without waiting for receipt of instructions from RBI so that pensioners should 28
    get the benefits announced by the Governments in the succeeding month's pension payment itself.
  • System of attending to customer service including pension payments may be reviewed.
  • The branch continues to be a point of referral for the pensioner lest he/she feel disenfranchised.
  • All branches having pension accounts should guide and assist the pensioners in all their dealings with the bank
  • Suitable arrangements are made to place the arithmetic and other
    details about the pension calculations on the web, to be made
    available to the pensioners through the net or at the branches at
    periodic interval as may be necessary and sufficient
    advertisement is made about such arrangements
  • All claims for agency commission in respect of pension payments
    must be accompanied by a certificate from E.D. / CGM- in-
    Charge of Government business in case of SBI and its Associate
    Banks that there are no pension arrears to be credited /delays in
    crediting regular pension / arrears thereof.
    Veteran Raman
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