Money & Banking

RBI withdraws circulars on recovery of excess pension

Our Bureau Mumbai | Updated on January 21, 2021

The Reserve Bank of India has decided to withdraw with immediate effect three circulars issued by its Department of Government and Bank Accounts (DGBA) relating to recovery of excess pension paid by agency banks.

“It may please be noted that though the…circulars issued (two in 1991 and one in 2016) under the signature of RBI stand withdrawn, agency banks are requested to seek guidance from respective pension sanctioning authorities regarding the process to be followed for recovery of excess pension paid to the pensioners, if any,” the central bank said in a notification.

Agency banks are banks authorised to conduct government business in various States.

Not keeping with norms

In its notification, the RBI said it has been brought to its notice that the recovery of excess / wrong pension payments from the pensioners are being made in a manner that is not in keeping with the extant guidelines /court orders.

Excess pension

“Agency banks are again advised that, where excess pension payment has arisen on account of mistakes committed by the bank, the amount paid in excess should be refunded to the Government in lumpsum immediately after detection of the same and without waiting for recovery of any amount from the pensioners,” the RBI said.

Published on January 21, 2021

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