RBI issues pension-disbursement directions for agency banks
→Agency banks must run pension grievance and 8% delay-compensation controls now
Change
India's RBI issued pension-disbursement directions for agency banks handling Central and State government pensions, effective immediately.
Why it matters
Agency banks must implement government pension orders without further RBI instruction. Banks must issue life-certificate acknowledgements, appoint nodal grievance officers, and pay 8% per annum compensation for any pension-credit delay caused by bank error.
Implications
- → Agency-bank pension operations teams must update branch and CPPC procedures immediately under the new RBI directions.
- → Agency-bank customer-service teams must issue life-certificate acknowledgements and maintain pensioner grievance controls.
- → Agency banks must automatically compensate pensioners for bank-caused pension or arrear credit delays at 8% per annum.
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