COMPENSATION BY AGENCY BANKS (PDA) FOR DELAYED PAYMENT OF PENSION AND FAMILY PENSION WEF 01 OCT 2008
1. A large number of pensioners/family pensioners have been facing the problem of delayed payments by banks or paying lesser pension than their entitlement. It's been found to be a very very common problem particularly faced by the Family Pensioners who are generally not aware of their entitlements and the system which pays them the pension. We have seen my pensioners and Family pensioners running to their banks and virtually begging the bank clerks to look into the payments and corrections whereas they are duty bound by explicitly laid down rules too pay the correct pension without any claims from us. The attitude of the bank clerks in most of the banks has generally seen to be rude and indifferent as if they are the ones who are giving the pension to them. (Contd -click below) -----
2. We have since long been bringing out this issue in its right perspective through this web site as well as through Signals Parivaar Emails, for the benefit of the veterans and family pensioners. We must be aware that the Pension Paying Banks are only the agencies (NOT AUTHORITIES) to whom the Govt has outsourced the payment of Pensions at a cost. The banks are being paid a hefty sum of approx Rs 60/-to 70/- per entry of pension/Family Pension/arrears in our account & passbook. Therefore, they are not doing any "Ehsaan" (FAVOUR) on the Govt or the Pensioners. Since most of us are not aware of the Govt Orders on the subject, we resort to begging the Bank Staff out of sheer ignorance of the rules on our part. It is their business to pay us the right and entitled pensions as such they have been mandated to compensate the pensioners for any delay in payments.
3. These orders to the PDAs are contained in the PCDA(Pension) Circular Number 165. which can be downloaded from their web site http://pcdapension.nic.in/6cpc/Circular-165.pdf. The extracts of these instructiones are however reproduced in succeeding paragraphs for quick reference by our readers. In addition there is RBI's MASTER CIRCULAR which covers various other provisions on payment pf pensions for the convenience of the pensioners specially the Elders.
4. Among other instructions the most important is Para - 8 of the circular which includes reference on the Reserve Bank of India instructions to the PDAs to compensate the Pensioners with an Interest of 8% for any delayed payment wef 01 Oct 2008 without any claim from them. The para 8 in full is placed at the end of this post for our readers, so that they can claim the 8% interest on the delayed payments of pension and its arrears, which we are sure is not being paid by the banks to them. Since this compensation is to be paid by the PDAs from their own kitty, the same trickles down to their branch managers including deducting the same from the salaries of their faltering managers/executives.
5. A simple method to work out the interest is to work the interest of 8% on the unpaid amount month wise starting with any delayed payments from October 2008 onward. In order to make a valid claim we need to know the scheduled dates of various payments to the pensioners. There can be two situations, first, short payment of pension per month for a period where scheduled date is the last date of the month, second the payment of arrears after the issue of PCDA(P) Circulars for which we can always interact with our friends who are receiving pension from larger banks as to the date of payments of various arrears to them. We have also been informing to our email listed members of the scheduled dates of payments of the arrears.
6. One need to carefully work out the interest component, we suggest that 8% simple yearly interest be worked on monthly basis after the scheduled date of payments by taking the aggregate of unpaid amount and in the end adding the total interst till paid. We may have to take help from our grand children, no harm.
7. Some of the approximate months of payment of past arrears has been as under:-
a) 6th CPC implementation Arrears 1st instalment - DEC - 2008
b) 6th CPC Implementation Arrears 2nd Installment :- SEP - 2009.
c) 6th CPC Correction of pension wef 24 Sep 2012 - JUN 13
d) OROP Arrears 1st Installment - MAR 2016
e) 6th CPC Correction of 24 sep pension wef 01 Jan 06 -- OCT 2015
f) OROP 2nd Instalment - AUG 2016
g) 7th CPC Arrears - NOV -2016
h) PMR Arrears (DL Rule 33) - DEC/JAN 2017
h0 OROP 3rd Installment - MAR 2017
NOTE :: In case you have not been paid these arrears around this period then you are eligible to claim the compensation so authorised to you by the RBI. There is no time limit for claiming the penalty interest.
8. The compensation is thus is the right of the pensioners so PLEASE DEMAND AND DON'T BEG. Do make a strong case by giving calculations of the interest wef the valid date. They have paid such compensation in many cases, in one of the cases of a family pensioner the bank had paid Rs 5 Lakh as interest from their own resources.
****************************************
EXTRACTS OF PARA 8 OF PCDA (P ) CIRCULAR NUMBER 165
SOME RESPONSES
BACK HOME - http://signals-parivaar.blogspot.in
1. A large number of pensioners/family pensioners have been facing the problem of delayed payments by banks or paying lesser pension than their entitlement. It's been found to be a very very common problem particularly faced by the Family Pensioners who are generally not aware of their entitlements and the system which pays them the pension. We have seen my pensioners and Family pensioners running to their banks and virtually begging the bank clerks to look into the payments and corrections whereas they are duty bound by explicitly laid down rules too pay the correct pension without any claims from us. The attitude of the bank clerks in most of the banks has generally seen to be rude and indifferent as if they are the ones who are giving the pension to them. (Contd -click below) -----
2. We have since long been bringing out this issue in its right perspective through this web site as well as through Signals Parivaar Emails, for the benefit of the veterans and family pensioners. We must be aware that the Pension Paying Banks are only the agencies (NOT AUTHORITIES) to whom the Govt has outsourced the payment of Pensions at a cost. The banks are being paid a hefty sum of approx Rs 60/-to 70/- per entry of pension/Family Pension/arrears in our account & passbook. Therefore, they are not doing any "Ehsaan" (FAVOUR) on the Govt or the Pensioners. Since most of us are not aware of the Govt Orders on the subject, we resort to begging the Bank Staff out of sheer ignorance of the rules on our part. It is their business to pay us the right and entitled pensions as such they have been mandated to compensate the pensioners for any delay in payments.
3. These orders to the PDAs are contained in the PCDA(Pension) Circular Number 165. which can be downloaded from their web site http://pcdapension.nic.in/6cpc/Circular-165.pdf. The extracts of these instructiones are however reproduced in succeeding paragraphs for quick reference by our readers. In addition there is RBI's MASTER CIRCULAR which covers various other provisions on payment pf pensions for the convenience of the pensioners specially the Elders.
4. Among other instructions the most important is Para - 8 of the circular which includes reference on the Reserve Bank of India instructions to the PDAs to compensate the Pensioners with an Interest of 8% for any delayed payment wef 01 Oct 2008 without any claim from them. The para 8 in full is placed at the end of this post for our readers, so that they can claim the 8% interest on the delayed payments of pension and its arrears, which we are sure is not being paid by the banks to them. Since this compensation is to be paid by the PDAs from their own kitty, the same trickles down to their branch managers including deducting the same from the salaries of their faltering managers/executives.
5. A simple method to work out the interest is to work the interest of 8% on the unpaid amount month wise starting with any delayed payments from October 2008 onward. In order to make a valid claim we need to know the scheduled dates of various payments to the pensioners. There can be two situations, first, short payment of pension per month for a period where scheduled date is the last date of the month, second the payment of arrears after the issue of PCDA(P) Circulars for which we can always interact with our friends who are receiving pension from larger banks as to the date of payments of various arrears to them. We have also been informing to our email listed members of the scheduled dates of payments of the arrears.
6. One need to carefully work out the interest component, we suggest that 8% simple yearly interest be worked on monthly basis after the scheduled date of payments by taking the aggregate of unpaid amount and in the end adding the total interst till paid. We may have to take help from our grand children, no harm.
7. Some of the approximate months of payment of past arrears has been as under:-
a) 6th CPC implementation Arrears 1st instalment - DEC - 2008
b) 6th CPC Implementation Arrears 2nd Installment :- SEP - 2009.
c) 6th CPC Correction of pension wef 24 Sep 2012 - JUN 13
d) OROP Arrears 1st Installment - MAR 2016
e) 6th CPC Correction of 24 sep pension wef 01 Jan 06 -- OCT 2015
f) OROP 2nd Instalment - AUG 2016
g) 7th CPC Arrears - NOV -2016
h) PMR Arrears (DL Rule 33) - DEC/JAN 2017
h0 OROP 3rd Installment - MAR 2017
NOTE :: In case you have not been paid these arrears around this period then you are eligible to claim the compensation so authorised to you by the RBI. There is no time limit for claiming the penalty interest.
8. The compensation is thus is the right of the pensioners so PLEASE DEMAND AND DON'T BEG. Do make a strong case by giving calculations of the interest wef the valid date. They have paid such compensation in many cases, in one of the cases of a family pensioner the bank had paid Rs 5 Lakh as interest from their own resources.
****************************************
EXTRACTS OF PARA 8 OF PCDA (P ) CIRCULAR NUMBER 165
Circular No. 165
Audit/Tech./070-XXI
O/o
the Pr.CDA (P), Allahabad
Dated: 22 .02.2013.
To,
The CMD
1.
All Public Sector banks
2.
Private
Sector Banks (i.e. ICICI, HDFC
and AXIS Banks)
Sub:
Delay in payment of pension to Defence
Pensioners / Family Pensioners by agency banks.
***********
EXTRACT OF PARA – 8..
8.
Compensation by the Agency Banks for
delay in
crediting
nsion/family
pension/arrear thereof:-
(i) Delay
in credit of pension/family pension/ arrears
thereof by banks have always been cause of increase
of representation from defence
pensioners/family pensioners. Though, RBI has already issued
the guidelines to all agency banks to put in place a mechanism to obtain immediately the copies
of pension order from Pension Sanctioning Authorities directly and to make payments
so that pensioners/family pensioners should get benefits announced
by the Governments in the succeeding month’s pension payment itself. (ii)Non
adhering by of above guidelines, thereby causing, increase of complaints from pensioners/family pensioners alleging inordinate delay in disbursing the revised pension/family pension and arrears therof has been reviewed by RBI. And in order to obviate the such unwarranted inordinate delay in payment
of pension/defence pension and arrears thereof, RBI has further instructed vide item 34 of Master Circular on Disbursement of pension
by Agency Banks issued by RBI under letter No. RBI/2013-13/103, DGBA.GAD.No.H- 4/31.05.001/2012-13
dated July 2, 2012 that pension paying banks should compensate the pensioner for delay in crediting
the pension/family pension/ arrears thereof by paying compensation at a fixed interest
rate of 8 percent
for the delay after the due date and the compensation shall be credited
to the pensioner’s/family pensioner’s account automatically without any claim from the pensioner/family pensioner on the same day when the bank affords
credit for revised
pension/family pension/ arrears thereof in respect
of all delayed
pension payments
made since October 1, 2008.
In view of the positions
explained above, it is requested
that all paying branches/CPPC making/authorising payment of defence
(including denfence civilian) pension/family pension may be advised/instructed either to put in place a mechanism to revise/calculate the pension/family pension/ arrears thereof at earliest
so that pensioner/family pensioner should get the benefits
announced by the Government in the succeeding month’s pension payment itself or to compensate the pensioner/family
pensioner at a fixed interest
rate of 8 percent for the delay in crediting
his/her pension/family pension
or arrears thereof.
Sd/-
(P.N. CHOPRA)
ACDA
(P)
SOME RESPONSES
From: Course Senior
Sent: Tuesday, 13 June, 2017 1:25 PM
To: nkd616@gmail.com
Subject: Fwd: [SIGNALS - NCR] COMPENSATION FOR DELAYED PAYMENTS BY
PDAs - Brig KS Saini
Dear Sir,
When 6 CPC
Arrears were paid the letter was issued in Jan.
the Banks paid
the money in May because Chidambaram as Finance Minister had told the banks to
delay the Payment as would upset his Budget which was being presented.
I took up the
case with my Bankers about the delay and insisted 8% interest as per the RBI
orders.
So the bank
reluctantly paid me Rs 875/- as interest on delayed payment.
Just for your
info pl
Rgds,
Brig KS
Saini
BACK HOME - http://signals-parivaar.blogspot.in
SL 1964 Lt Col S R Kolhatkar Rank pay arrears Receiveed 18 months after the Corr PPO was recd by the Bankers. Writing to them for the last 2 years. They are avoiding and not responding. Where do I go next?
ReplyDeleteRespected Col saheb,
ReplyDeleteYou can make a complained to OMBUDESMEN RBI after 30 days of your original complained made to BANK along with the copy of orginal one asking BANK is not responding to my complained.
I am also retired from army from rank sep but latter I served in Bank as an officer for a period of 30 years.
B L YADAV
1249158 Sep
Artillery
Retd in 1976