Lok Sabha Question No. 3230 (UNSTARRED), answered on 2016-08-05
Subject: Refund of Excess Payments
Ministry: FINANCE
Asked by: K. ASHOK KUMAR

- (a)  whether  the  Government  has  received  any  complaints  against  banks  from pensioners regarding excess/wrong payments and if so, the details thereof;
- (b) whether the Reserve Bank of India has asked the banks to follow rules on excess recovery from pensioners; and
- (c) if so, the details thereof and steps taken by the banks in this regard?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SANTOSH KUMAR GANGWAR)

- (a) :  Yes Madam.  Details are at Annexure.
- (b)  &  (c):    The  Reserve  Bank  of  India  vide  Circular  dated  17/03/2016  has  issued necessary  guidelines  directing  the  pension  paying  banks  that  as  soon  as  the excess/wrong  payment  made  to  the  pensioner  comes  to  the  notice  of  the  paying branch, the branch should adjust the same against the amount standing to the credit of the pensioner's account to the extent possible.  The guidelines of Reserve Bank of India  for  refund  of  excess  pension  payments  are  applicable  to  all  banks.    As  per Reserve Bank of India norms, excess payment made wrongly to the pensioners may be  recovered  at  a  time  if  agreed  by  the  pensioner,  upto  a  maximum  33%  of  the pension amount per month for adjusting the excess amount of pension paid.

Annexure

Number of Complaints  received at the Offices of Banking Ombudsmen during 2014-15 and 2015-16 (upto 30 th June 2016) regarding Pension related matters.

Public Sector Banks

| Bank Name                        |   2014-15 |   2015-16 |
|----------------------------------|-----------|-----------|
| STATE BANK OF INDIA              |      3274 |      3178 |
| STATE BANK OF BIKANER AND JAIPUR |       243 |       211 |
| STATE BANK OF HYDERABAD          |        54 |        50 |
| STATE BANK OF MYSORE             |        17 |        26 |
| STATE BANK OF PATIALA            |        74 |        92 |
| STATE BANK OF TRAVANCORE         |        44 |        62 |
| ALLAHABAD BANK                   |        91 |       115 |
| ANDHRA BANK                      |        37 |        55 |
| BANK OF BARODA                   |       138 |       180 |
| BANK OF INDIA                    |       223 |       338 |
| BANK OF MAHARASHTRA              |        28 |        31 |
| CANARA BANK                      |       139 |       310 |
| CENTRAL BANK OF INDIA            |       219 |       216 |
| CORPORATION BANK                 |         5 |         5 |
| DENA BANK                        |        87 |        70 |
| INDIAN BANK                      |        82 |        82 |
| INDIAN OVERSEAS BANK             |        58 |        91 |
| ORIENTAL BANK OF COMMERCE        |        18 |        31 |
| PUNJAB AND SIND BANK             |        22 |        32 |
| PUNJAB NATIONAL BANK             |       470 |       576 |
| SYNDICATE BANK                   |        88 |       142 |
| UCO BANK                         |        84 |       148 |
| UNION BANK OF INDIA              |       126 |       139 |
| UNITED BANK OF INDIA             |        66 |        69 |
| VIJAYA BANK                      |        16 |        23 |
| IDBI BANK LIMITED                |         2 |         0 |

| Private Sector Banks                     | Private Sector Banks   | Private Sector Banks   |
|------------------------------------------|------------------------|------------------------|
| JAMMU AND KASHMIR BANK LTD               | 1                      | 1                      |
| LAKSHMI VILAS BANK LTD                   | 0                      | 1                      |
| THE DHANALAKSHMI BANK LTD                | 2                      | 0                      |
| AXIS BANK LIMITED                        | 4                      | 6                      |
| HDFC BANK LTD.                           | 7                      | 4                      |
| ICICI BANK LIMITED                       | 7                      | 4                      |
| Foreign Sector Banks                     | Foreign Sector Banks   | Foreign Sector Banks   |
| AMERICAN EXPRESS BANKING CORP.           | 0                      | 2                      |
| HONGKONG AND SHANGHAI BANKING CORPN.LTD. | 2                      | 0                      |
| ROYAL BANK OF SCOTLAND                   | 0                      | 1                      |
| STANDARD CHARTERED BANK                  | 2                      | 5                      |
| OTHERS                                   | 47                     | 46                     |
| Total                                    | 5777                   | 6342                   |