For Quick Alerts
For Daily Alerts

Banks Must Follow Rules On Excess Recovery From Retirees: RBI

By Religare

Stating that it is receiving complaints from pensioners against the lenders' attitude regarding collection of excess or wrong payments, RBI asked banks to strictly adhere to the relevant rules, reported PTI.

Banks Must Follow Rules On Excess Recovery From Retirees: RBI
"We have been receiving complaints from pensioners stating that the recovery of excess/wrong pension payments are being made in a manner that is not in keeping with the extant guidelines," RBI said in a notification.

The regulator asked the banks to follow the relevant guidelines on this formulated in 1991 while dealing with such excess payments.

As soon as the excess payment comes to the notice of the bank, it should adjust the same against the amount standing to the credit of the pensioner's account to the extent possible, including lump sum arrears payment, it said.

In cases where the entire amount of over payment cannot be adjusted from the account, the pensioner may be asked to pay forthwith the balance amount of over payment, the apex bank said.

If the pensioner expresses inability to pay the amount, the same may be adjusted from the future payments to be made to them, it said.

"For recovering the over-payment made to pensioner from his future pension payment in instalments 1/3rd of net (pension + relief) payable each month may be recovered unless the person concerned gives consent in writing to pay a higher instalment amount."

And, if the over payment cannot be recovered from the pensioner due to death or discontinuance of pension, then action has to be taken as per the letter of undertaking given by the pensioner under the scheme, the apex bank said.

It also asked the banks to ensure that the pensioner is communicated about the details of overpayment/wrong payment and mode of its recovery.

Read more about: banks
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more