Lok Sabha Question No. 1122 (UNSTARRED), answered on 2016-04-29
Subject: Disbursement of Pension by Banks
Ministry: FINANCE
Asked by: NANDI YELLAIAH, RITI PATHAK

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## UNSTARRED QUESTION NO. 1122

## TO BE ANSWERED ON THE 29 TH  APRIL, 2016/9 VAISAKHA, 1938 (SAKA) DISBURSEMENT OF PENSION BY BANKS QUESTION

## 1122. SHRI NANDI YELLAIAH: SHRIMATI RITI PATHAK:

Will the Minister of FINANCE be pleased to state:

- (a)  whether  the  headquarters  of  the  banks  have  the  authority  to  disburse  monthly pension to pensioners despite the issuance of directions, if so, the details thereof;
- (b) whether the Government has received any complaints from pensioners regarding delay in release of their pension from the banks, if so, the details thereof;
- (c) whether the Government has issued any directions to the banks including central pension processing centres to release the timely pension, if so, the details thereof; and
- (d)  the  steps  taken/being  taken  by  the  Government  to  simplify  the  procedure  in releasing pensions in this regard?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI JAYANT SINHA)

- (a): As  per the circular of Reserve  Bank  of  India (RBI) dated 01.10.2008, arrangement for disbursement of monthly pension for Civil Pensioners  was operationalised by establishing a Central Pension Processing Centre (CPPC) at all pension disbursing banks.   42 CPPCs of Banks are disbursing monthly pension to Central Civil Pensioners (14 of SBI and 28 of other authorized banks).

(b): A Grievance Redressal Cell is functioning in Central Pension Accounting Office (CPAO)  to  resolve  the  problem  of  pensioners.  Apart  from  getting  redressed  their grievances through toll free telephone lines of the CPAO as well as various pension paying  banks,  the  pensioners  can  also  lodge  their  pension  related  grievances  in CPGRAMS portal. As on 27.04.2016, 7436 public grievances relating to retirement benefit  /  delay  in  payment  of  pensions,  including  delay  in  release  of  pension  by banks,  have been recieved of which 7198 grievances have been redressed.

In  addition  to  the  above,  pensioners  can  also  approach  the  Banking  Ombudsman offices working  under  the  Reserve  Bank  of  India  with their pension  related grievances.  The  details  of  complaints  received  by  the  15  offices  of  Banking

Ombudsman  regarding  all  pension  related  matters,  including  delay  in  release  of pension by banks, are at Annex .

(c)  &  (d):  The  provision  of  the  'Scheme  for  payment  of  pensions  to  Central Government  Civil Pensioners by Authorized Banks' read with 'Accounting & Operation  Procedure  for  Banks  for  pension  disbursement  to  Central  Government (Civil) Pensioners' stipulate the time schedule for payment of pension by banks.

All CPPCs are required to credit the monthly pension into the pensioner's account by the last working day of the month, except in the month of March when it would be credited on the first working day of April.

Instructions are issued from time to time to the banks to ensure strict compliance of the  directions  of  the  Department  of  Pension  and  Pensioners'  Welfare  (DOPPW) relating to timely payment as well as redressal of grievances of pensioners.

To facilitate submission of life certificate, all pension disbursing banks were advised vide circular dated 02.03.2016 to accept Digital Life Certificate (DLC) through Jeevan Pramaan Facility from the pensioners.  Since adoption of DLC is a voluntary decision of the pensioner, therefore, the banks were also asked to    ensure that there is no discrimination against those pensioners who choose to submit life certificate through conventional means.

To  avoid  delay  in  disbursement  of  first  payment  of  pension  to  pensioners,  the undertaking by pensioner for refund or making good any amount to which he is not entitled  is  now  being  forwarded  along  with  the  Pension Payment  Order  by  the Accounts Officer/CPAO and pensioner is not required to visit the bank to activate the first payment of pension.

The implementation of paper less movement of digitally signed e- revision authorities to  banks  is  underway  for  faster  and  timely  processing  and  credit  of  revision  of pension cases.

*****

Annex Complaint received at  the Offices of Banking Ombudsmen from July 2014 to April 25,2016 regarding Pension

| Bank Name                        |      | 2015-16(till April 25,2016   |
|----------------------------------|------|------------------------------|
| STATE BANK OF INDIA              | 3274 | 2633                         |
| STATE BANK OF BIKANER AND JAIPUR | 243  | 162                          |
| STATE BANK OF HYDERABAD          | 54   | 40                           |
| STATE BANK OF MYSORE             | 17   | 22                           |
| STATE BANK OF PATIALA            | 74   | 66                           |
| STATE BANK OF TRAVANCORE         | 44   | 51                           |
| ALLAHABAD BANK                   | 91   | 102                          |
| ANDHRA BANK                      | 37   | 45                           |
| BANK OF BARODA                   | 138  | 118                          |
| BANK OF INDIA                    | 223  | 226                          |
| BANK OF MAHARASHTRA              | 28   | 27                           |
| CANARA BANK                      | 139  | 217                          |
| CENTRAL BANK OF INDIA            | 219  | 153                          |
| CORPORATION BANK                 | 5    | 5                            |
| DENA BANK                        | 87   | 50                           |
| INDIAN BANK                      | 82   | 62                           |
| INDIAN OVERSEAS BANK             | 58   | 66                           |
| ORIENTAL BANK OF COMMERCE        | 18   | 22                           |
| PUNJAB AND SIND BANK             | 22   | 25                           |
| PUNJAB NATIONAL BANK             | 470  | 442                          |
| SYNDICATE BANK                   | 88   | 107                          |
| UCO BANK                         | 84   | 108                          |
| UNION BANK OF INDIA              | 126  | 109                          |
| UNITED BANK OF INDIA             | 66   | 54                           |
| VIJAYA BANK                      | 16   | 19                           |
| IDBI BANK LIMITED                | 2    | 0                            |
| Bhartiya Mahila Bank             | 0    | 0                            |
| Private Sector Banks             |      |                              |
| CATHOLIC SYRIAN BANK LTD         | 0    | 0                            |
| CITY UNION BANK LIMITED          | 0    | 0                            |
| FEDERAL BANK LTD                 | 0    | 0                            |
| ING VYSYA BANK LTD               | 0    | 0                            |
| JAMMU AND KASHMIR BANK LTD       | 1    | 0                            |
| KARNATAKA BANK LTD               | 0    | 0                            |
| KARUR VYSYA BANK LTD             | 0    | 0                            |
| LAKSHMI VILAS BANK LTD           | 0    | 1                            |
| NAINITAL BANK LTD                | 0    | 0                            |
| RATNAKAR BANK LTD                | 0    | 0                            |
| SOUTH INDIAN BANK LTD            | 0    | 0                            |
| TAMILNAD MERCANTILE BANK LTD     | 0    | 0                            |

| THE DHANALAKSHMI BANK LTD                | 2    | 0    |
|------------------------------------------|------|------|
| AXIS BANK LIMITED                        | 4    | 6    |
| BANDHAN BANK LIMITED                     | 0    | 0    |
| DEVELOPMENT CREDIT BANK LTD.             | 0    | 0    |
| HDFC BANK LTD.                           | 7    | 0    |
| ICICI BANK LIMITED                       | 7    | 3    |
| INDUSIND BANK LTD                        | 0    | 0    |
| KOTAK MAHINDRA BANK LTD.                 | 0    | 0    |
| YES BANK LTD.                            | 0    | 0    |
| Foreign Sector Banks                     |      |      |
| AMERICAN EXPRESS BANKING CORP.           | 0    | 2    |
| BARCLAYS BANK PLC                        | 0    | 0    |
| CITIBANK N.A                             | 0    | 0    |
| DEUTSCHE BANK(ASIA)                      | 0    | 0    |
| HONGKONG AND SHANGHAI BANKING CORPN.LTD. | 2    | 0    |
| ROYAL BANK OF SCOTLAND                   | 0    | 1    |
| STANDARD CHARTERED BANK                  | 2    | 5    |
| OTHERS                                   | 47   | 36   |
| Total                                    | 5777 | 4985 |