Pl get your Confusion on Pension Payments & Penal Interest cleared.
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R Padmanabhan
Apr 24, 2013, 8:40:52 PM4/24/13
to vetera...@googlegroups.com
Dear Veterans,
- Col BM Malhotra had raiseda doubt on the subject with the following query:
- What is the due date for receiving the enhanced pension arrears.RBI letter states 8% interest from due date. It all confusing.
Such confusion in the minds of Veterans is quite understandable.
- Placed below extract of two mails one received from Cdr Ravindra
Pathak and Veteran Gadepally Kameswara rao.
- I am sure your confusion should be over if you carefully go through these valuable feedback from our respected Veterans.
- Regards and best wishes,
- R Padmanabhan
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Refer to the RBI Circular on Interest on delayed
payment.( Copy placed below)
Delay in Rank Pay arrears payment is not caused by Banks and hence no liability to Banks on this count.
The circular clearly states as follows
ii) Pension paying banks have been requested to
put in place a mechanism to obtain immediately the copies of pension orders from the pension paying authorities directly and make payments without waiting for receipt of instructions from RBI so that pensioners should get the benefits announced by the Governments in the succeeding month's pension payment itself.
Therefore your contention of there being no cut off date is not correct.
So logically banks should pay the 24/09/2012 arrears from the pension for Jan 2013.But given some latitude that should be at least from 01 Mar 2013 i.e wef date of pension paid for Feb 2013.
Kindly circulate this to all those who are on your mailing list.
Courtesy: Cdr Ravindra Pathak
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ii) Pension paying banks have been requested to put in place a mechanism to obtain immediately the copies of pension orders from the pension paying authorities directly and make payments without waiting for receipt of instructions from RBI so that pensioners should
get the benefits announced by the Governments in the succeeding month's pension payment itself.
iii) System of attending to customer service including pension payments may be reviewed.
iv) The branch continues to be a point of referral for the pensioner lest he/she feel disenfranchised.
v) All branches having pension accounts should guide and assist the pensioners in all their dealings with the bank
vi) Suitable arrangements are made to place the arithmetic and other
details about the pension calculations on the web, to be made
available to the pensioners through the net or at the branches at
periodic interval as may be necessary and sufficient
advertisement is made about such arrangements
vii) All claims for agency commission in respect of pension payments
must be accompanied by a certificate from E.D. / CGM- in-
Charge of Government business in case of SBI and its Associate
Banks that there are no pension arrears to be credited /delays in
crediting regular pension / arrears thereof.
I . R B I Circular No 40 on Pension Payment given below:
You may like to visit this web site and update yourself on the matter. I am giving the extract of serial 40 of the circulars listed for info
Viswanathan
http://rbidocs.rbi.org.in/rdocs/Notification/PDFs/98MCP010711F.pdf
I40. Pension Payment to Central/ State Govt. Pensioners by Agency Banks-Delay
(Ref.DO.No.CSD.CO/8793/13.01.001/2009-10 dated April 09, 2010, DGBA.GAD.No.H- 46/45.01.001/2010-11 dated July 2, 2010 and DGBA.GAD.No.H- 6212 & 6213/45.01.001/2010-11 dated March 11, 2011)
Reserve Bank of India is receiving several complaints from the pensioners alleging inordinate delay in disbursing the revised pension and arrears. Position was reviewed by RBI and the agency banks have been instructed as under:
i) Pension paying banks should compensate the pensioner for the delay in crediting the pension/ arrears thereof by paying compensation at Bank Rate plus 2% penal interest for the delay after the due date 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 since October 1, 2008.
Viswanathan
http://rbidocs.rbi.org.in/rdocs/Notification/PDFs/98MCP010711F.pdf
I40. Pension Payment to Central/ State Govt. Pensioners by Agency Banks-Delay
(Ref.DO.No.CSD.CO/8793/13.01.001/2009-10 dated April 09, 2010, DGBA.GAD.No.H- 46/45.01.001/2010-11 dated July 2, 2010 and DGBA.GAD.No.H- 6212 & 6213/45.01.001/2010-11 dated March 11, 2011)
Reserve Bank of India is receiving several complaints from the pensioners alleging inordinate delay in disbursing the revised pension and arrears. Position was reviewed by RBI and the agency banks have been instructed as under:
i) Pension paying banks should compensate the pensioner for the delay in crediting the pension/ arrears thereof by paying compensation at Bank Rate plus 2% penal interest for the delay after the due date 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 since October 1, 2008.
ii) Pension paying banks have been requested to put in place a mechanism to obtain immediately the copies of pension orders from the pension paying authorities directly and make payments without waiting for receipt of instructions from RBI so that pensioners should
get the benefits announced by the Governments in the succeeding month's pension payment itself.
iii) System of attending to customer service including pension payments may be reviewed.
iv) The branch continues to be a point of referral for the pensioner lest he/she feel disenfranchised.
v) All branches having pension accounts should guide and assist the pensioners in all their dealings with the bank
vi) Suitable arrangements are made to place the arithmetic and other
details about the pension calculations on the web, to be made
available to the pensioners through the net or at the branches at
periodic interval as may be necessary and sufficient
advertisement is made about such arrangements
vii) All claims for agency commission in respect of pension payments
must be accompanied by a certificate from E.D. / CGM- in-
Charge of Government business in case of SBI and its Associate
Banks that there are no pension arrears to be credited /delays in
crediting regular pension / arrears thereof.
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unfortunately, most of our friends are not comprehending what the amount of arrears that is credited in their account pertains to--
and quite a few of them ask me to elucidate -- my answer is--
if the amount was shown in the pass book/ statement of account,as received from PCDA(O) / CDA(NAVY) /CDA(AIR FORCE) it is Rank Pay Arrears--
if it is a direct credit by the bank, it is enhanced pension--
also there is confusion between DR arrears and enhanced pension arrears, if there is a direct credit--
that should not be a problem at all--
DR arrears usually credited in April/ May and Sep/Oct.
-enhanced pension arrears any time after Jan 2013.
Most of the banks give a standard answer when they r asked to clarify what the credit pertains to and how it was worked out and what is the new revised enhanced basic pension is-
- MENNU PATA NAHIN__ UPAR SE AISEE AYAH HAIN ! and the Central Pension
processing cells do not respond to inquiries it seems --
I personally don't have these problems as I draw my pension from the DPDO and i got the arrears in March 2013, before the closure of the financial year.
Another problem regarding the enhanced pension is that the banks are using Annexure A only for even AMC / AD Corps / RVC pensioners -- the banks cannot know from the ppo who is a doctor and who is non-doctor pensioner, they say ,it seems.
For paying the revised pension of VI CPC in 2008 /09, a wing Commender was told that there is no mention of such rank in the orders and so no revision was involved ! -- that despite the PCDA(P) having issued a circular showing the equivalent ranks of the three services !
that is the state of affairs with banks .
regards
From: "vetera...@googlegroups.com" <vetera...@googlegroups.com>
Sent: Wednesday, 24 April 2013 4:02 PM
Subject: Enhanced Pension Payments & Penal Interest
- BM <bmmal...@gmail.com> Apr 24 10:26AM +0530
What is the due date for receiving the enhanced pension arrears.RBI letter states 8% interest from due date. It all confusing.
Col BM Malhotra
91-11-24334928, 09958468417
A-417 ( GF ) Defence Colony
New Delhi - 110024
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