DFS APPROVE PENSION AT UNIFORM RATE OF 50% IN SBI

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For Information.

eF. No. 16/2/3/2011-IR Pt. 

Government of India Ministry of Finance Department of Financial Services.

3rd Floor, Jeevandeep Building, Sansad Marg New Delhi, dated 10th November, 2023

Το

The Chairman, State Bank of India, Mumbai

Subject: Computation of pension at the uniform rate of 50% in place of the existing dual rate in State Bank of India (SBI)- regarding

Sir,

With reference to the subject mentioned above, I am directed to convey the approval of the Central Government for computation of pension in SBI at a uniform rate of 50% for all the pensioners, in place of the existing dual rate of calculation of pension.

2. Accordingly, to give effect to the above prospectively, bank is advised to take immediate steps for making consequential amendments to the relevant regulation(s) as per section 50 of State Bank of India Act, 1955.

Yours faithfully,

s/d

(Vijay Shankar Tiwari)

Under Secretary to the Government of India

Ph. 011-2336 2349

Email: i...@nic.in

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In the case of Sri. C. Narasimhappa and others Vs Vijaya Bank, the Karnataka High Court at Bangalore ruled that employees who resigned from bank service after completing 20 years of service are eligible for pension. The respondents in the case had completed 20 years of qualifying service and were therefore eligible to voluntarily "retire" from their employment in the bank. 

The case was decided on July 30, 2012. The bank filed a Special Leave Petition in the Supreme Court in SLP (Civil) 21907/2012. Other eligible resignees of all banks, including Vijaya Bank, filed Writ Petitions/Appeals in various High Courts based on the Supreme Court Judgement in Narasimhappa & others Vs Vijaya Bank.