BANKS SHOULD PAY INTEREST

AUTOMATICALLY FOR DELAYED CREDIT OF

PENSION AND ARREARS

A report in Economic times on 19-9-2019 says:

The Reserve Bank of India (RBI) has asked all government pension paying banks to compensate pensioners, at a fixed rate of 8 percent per annum for delay in credit of their pension, revised pension or pension arrears for the delay after the due date of payment.

The above advisory forms part of RBI's master circular on disbursement of government pension by banks. The advisory was issued following complaints from pensioners claiming unreasonable delay in disbursement of pension and arrears.

The RBI circular states:

• Pension paying banks should compensate the pensioner for delay in crediting pension/ arrears thereof at a fixed interest rate of 8 per cent per annum for the delay after the due date of payment 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..