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The article reiterates the notification of RBI related to withdrawn circulars of pension made to pensioners- on the recovery of excess pension made to the pensioners. The point of discussion in the article is about the pension scheme for all employees.
Notification No: RBI/2020-21/84 Withdrawn Circular of Pension
The RBI in the notification number RBI/2020-21/84 stated that the wrong pension amount credited to pension holders’ account should be recovered. The excess pension paid is not keeping up with the guidelines laid down by the Court. The above came to the notice of RBI. The following circular has been issued by the Department of Government and Bank Accounts related to the recovery of excess pension paid by agency banks. Through this notification, the excess amount paid by the Bank stands withdrawn, with effect from the date of this circular.
The notification clarifies that the notifications that are withdrawn are as follows:
The RBI clarifies with effect from the notification date January 21, 2021; the above mentioned three circulars stand withdrawn. The agency banks are requested to take guidance from the respective Pension Sanctioning Authority, in keeping with the excess pension to be recovered from pensioners. Other institutions are in the process for the recovery of excess pension paid to pensioners.
The same question was raised in the past by the pensioners in 2015 and 2016. The RBI issued guidelines, for the same, in 2015. As per 2021 Circular, the process is not been mentioned. As RBI has Withdrawn Circulars of Pension.
The guidelines were mentioned in the notification of RBI/2015-16/340:
Q1. What is the scheme of payment of pension?
Answer 1. Authorized Banks pay under the scheme of payment of pension to central government pensioners. Pension is paid t retired government employees, including the payment of basic pension, increased dearness relief, or any other benefits or benefits announced by the government. This is covered under the Master Circular- Disbursement of Government Pension by Agency Banks dated September 9, 2019.
Q2. When is the pension credited by the Paying Bank?
Answer 2. The Pension Paying Authorities instructs the Paying Banks to credit the pension amount in the pensioners’ accounts. Pension would be paid when requested by the pensioner.
Q3. Can the paying Bank recover the excess amount credited to the Pensioner’s account?
Answer 3. Yes following the details of the uniform procedure laid for the excess or wrong amount of payments made to the pensioners. The pensioners who are drawing pension through central, civil, defense, railways companies would be notified regarding the excess pension.
Q4. Whether the Pensioner is entitled to compensation for delayed payment of pension?
Answer 4. Yes, the Paying Bank shall compensate the Pensioner for delaying or crediting the amount in his account. The interest is fixed at 8% per annum for delay after the due date of payment. This amount of compensation shall be credited in the Pensioner’s account without any claim from the Pensioner. The amount of compensation shall be credited when the Bank affords credit for the revised pension or pension arrears, in respect of delayed pension amount, came with effect from October 1, 2008.
RBI brought a circular for withdrawal of excess pension. This circular was brought cause of excess pension credited to the pensioners account. The circulars were not keeping with the guidelines of the court. The RBI has withdrawn the 2009 and 2015 circular for excess payment of pension. This circular has guidelines which can be utilized by the paying bank to recover pension. We at Enterslice can provide assistance for the same.
Read our article:Master Circular on Conduct of Government Business by Agency BanksNOTI84E210120215F3C96E4951C48F1BC4EAA53939D5183