Reserve Bank Of India

RBI/2015-16/294
DGBA.GAD.No.2278/31.12.2010/2015-16

January 21,2016

The Chairman & Managing Director/
The Chief Executive Officer
All Agency Banks

Dear Sir/Madam

Payment of Agency Commission on pension accounts

As you may be aware, agency banks are being compensated at Rs.65 per transaction for handling pension computation, payment and related services on behalf of Central and State Governments. As per the norms followed by the Government, a pensioner’s account should not have more than 14 credit transactions in a calendar year attributable to pension and related arrear payments, if any.

2. It has however come to our notice that certain banks are apportioning payment of arrears on account of Dearness Relief (DR) and/or delay in start of pension monthwise, thus, resulting in inflated agency commission claims. It is reiterated that number of commisionable transactions for payment of agency commission on account of pension in a year should not exceed 14. This includes one monthly credit for payment of net pension and a maximum of two per year for payment of arrears on account of increase in DR, if applicable.

3. It is also reiterated that cases involving payment of arrears on account of late start/restart of pension qualifies as a single transaction for claiming of agency commission. In other words, any payment of arrears on account of late start/restart of pension should be effected in a single credit transaction instead of separate monthly credits.

4. Some of the Central Government Departments and State Governments prefer to compute the pension figures on their own and pass them on to banks for payment. Such transactions may be included under non-pension payments, on which agency commission is payable on a turnover basis as per the existing norms (currently at 5.5 paise per Rs. 100/-).

Yours faithfully

(Manish Parashar)
Deputy General Manager

Authority: https://rbidocs.rbi.org.in/

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RESERVE BANK OF INDIA
www.rbi.org.in

Ref. DGBA.GAD No. H-7386/45.01.001/2012-13

The Chairman / Managing Director
State Bank of India & its Associates Banks
Chairman & Managing Director
All Nationalised Banks & IDBI
Bank Ltd.
ICICI Bank Ltd, Axis Bank Ltd, HDFC Bank Ltd.

Dear Sir,

Payment of pension to the Central Government pensioners – Continuation of either or survivor pension account after death of a pensioner

We have been receiving complaints from the pensioners that on death of a pensioner, banks are insisting on opening of a fresh account by the widow/widower  of the pensioner for the purpose of family pension.

2. In this connection, we advise that in case the spouse (Family pensioner) opts for existing joint account for credit of family pension, banks should not insist on opening of a new account when the spouse is the survivor and having a joint account with the pensioner and in whose favour an authorization fo payment of family pension exists in the Pension Payment Order (PPO).

3. We advise you to issue suitable instructions to your Regional Offices/branches authorised to disburse pension to the Central Government pensioners.

Yours faithfully,
sd/-
(Satyapal Unni)
Assistant General Manager

Endt.DGBA.No.H.7387/45.01.001/2012-13 of date

Copy forwarded for information to

1. the Controller General of Accounts, Government of India, Ministry of Finance,  Department of Expenditure, Office of the Controller General of Accounts, 7th Floor, Lok Nayak Bhavan, Khan Market, New Delhi-110 511  with reference to his letter No.T-14018/31/2011/TA-III/279 dated May 17, 2013.

2. the Controller General of Defence Accounts, Government of India,  Ministry of Defence West Block-V, R K Puram, New Delhi -110 066 with reference to his letter No. AT/CC/P-Offrs/R-109/04/11 dated June 27, 2011

3. the Director, Finance (A), Government of India, Ministry of Railways, (Railway Board), New Delhi, with reference to his letter No.2011/AC-II/21/2 dated My 11, 2011

4. the Director (TAl), Government of India, Ministry of Communications, Departmentof Telecommunications, Sanchar Bhavan, New Delhi 110 001 with reference to his letter No 6-138/1990-TA-l/Vol-Vll/606 dated May 4. 2011.

5. the Chief Controller (Pensions), Government of India, Ministry of Finance, Department of Expenditure, Central Pension Accounting Office, Trikoot 2, Bikaji Cama Place, New Delhi 110 066 with reference to his letter No.CPAO/Tech/Misc/2010-11/345 dated May 4, 2011.

6. the Director (Budget and Admn, ), Ministry of Communications & IT, Department of Posts, Government of India, PA Wing: PEA branch, Dak Bhavan, Sansad Marg, New Delhi-110 001

7. the Regional Director/General Manger, Reserve Bank of India, Public Accounts Department, Ahmedabad / Bangalore / Bhubaneswar / Belapur / Bhopal / Chandigarh / Chennai / Kolkata / Guwahati / Hyderabad / Jaipur/ Kanpur / Mumbai /New Delhi / Nagpur / Patna /Thiwvananthpuram

8. the Chief General Manager, Reserve Bank of India, Customer Service Department. CO 1st Floor, Amar Building, Sir P.M Road. Mumbai 400001

9. All Banking Ombudsmen.

(S.K.Vasave)
Manager

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