Kolkata: Reserve Bank of India (RBI) is not ready to tolerate delay in pension payment by banks anymore. The RBI has directed “agency banks” that disburse pensions to retired employees of the central government to compensate for any delay that might happen in disbursing the pension amount. The banking regulator has also set the rate of compensation — it has said that banks must pay interest at the rate of 8% per annum. The circular stating the new rule was issued at the beginning of the first month of the new financial year.
The circular tiled ‘Disbursement of Government Pension by Agency Banks’ stipulated that all disbursing banks must pay interest at the rate on any delay in crediting pension to the accounts of central government civil pensioners. What’s significant is that the new rule applies to all types of pension — that due to superannuation, family pensions and other retirement-related benefits.
Compensatory payment should be automatic
Perhaps the most significant part of the circular is that payment of the compensatory interest at 8% per annum should be automatic and the ban must not wait for the pensioner to ask for the compensation. “Agency Banks shall compensate the pensioner for delay in crediting the pension/arrears thereof by paying compensation at a fixed interest rate of 8 per cent per annum,” said the circular.
Reserve Bank of India has also stipulated when the compensation will be paid and has left nothing to interpretation. The pension disbursing bank must credit the interest amount to the pensioner’s account on the same day the pension is paid and not later. It is clear form the way the circular has been worded that RBI is just not willing to tolerate any delay in the disbursement of pension to the retirees and is eager to protect their financial rights.
The banking regulator is not ready to merely issue a direction to pay pension in time, or compensate for the dely. RBI has also directed banks to maintain records of delays and the compensation paid to the retirees. Whenever the records are asked for they have to be promptly made available.
The new rule set by the Reserve Bank of India will benefit all pensioners of the Central government since henceforth they will not suffer for any delay in the payment of pension by banks. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
