Pensioners account not to have more than 14 credit transactions a year: RBI

MUMBAI: The Reserve Bank today directed banks that a pensioner's account should not exceed more than 14 credit transactions in a calender year for retirement and arrear payments.

The agency banks are compensated at Rs 65 per transaction for handling pension computation, payment and related services on behalf of central and state governments.

However, RBI said that it has come to its notice that banks are apportioning payment of arrears on account of dearness relief (DR) or delay in start of pension monthwise, which is resulting in inflated agency commission claims.

"It is reiterated that number of commisionable transactions for payment of agency commission on account of pension in a year should not exceed 14.

"This includes one monthly credit for payment of net pension and a maximum of two per year for payment of arrears on account of increase in DR, if applicable", RBI said in a circular.

RBI also directed the banks that cases involving payment of arrears on account of late start/restart of pension qualifies as a single transaction for claiming of agency commission.

"In other words, any payment of arrears on account of late start/restart of pension should be effected in a single credit transaction instead of separate monthly credits."

Besides, some of the central government departments and state governments prefer to compute the pension figures on their own and pass them on to banks for payment.

Such transactions may be included under non-pension payments, on which agency commission is payable on a turnover basis as per the existing norms, currently at 5.5 paise per Rs 100, RBI said.

Further, in a separate directive, RBI allowed currency chest holding banks to enhance the service charges levied on cash deposited by non-chest bank branches from existing Rs 2 per packet of 100 pieces to Rs 5 per packet.

These instructions come into effect from February 1, 2016.

RBI, said the non-chest bank branches linked with currency chests may be advised in advance of the revised rates.