BackRecovery of excess pension made to pensioners: RBI withdraws circular
The RBI advised banks to seek guidance from pension-sanctioning authorities regarding the process to be followed for recovery of excess pension
PremiumThe Reserve Bank of India (RBI) on Thursday decided to withdraw all three circulars on recovery of excess payments made to pensioners, saying the documents didn’t follow guidelines and court orders.
The central bank said pensioners complained 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."
The RBI advised banks to seek guidance from pension-sanctioning authorities regarding the process to be followed for recovery of excess pension paid to the pensioners if any.
“It may please be noted that though the…circulars issued (two in 1991 and one in 2016) under the signature of RBI stand withdrawn, agency banks are requested to seek guidance from respective pension sanctioning authorities regarding the process to be followed for recovery of excess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 circular issued on March 17, 2016, the RBI had said as soon as the excess payment made to a pensioner comes to the notice of the paying branch, “the branch should adjust the same against the amount standing to the credit of the pensioner’s account to the extent possible including lumpsum arrears payment."
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