Higher pension for RBI employees a reality now

KOLKATA: The government has given its go-ahead to Reserve Bank of India's long standing demand for pension updation for its 21000-odd employees.

A government note approving the same said that pensioners would get notional rise of 10% plus dearness allowance with each of the three wage revisions in 2002, 2007 and 2012. This will result in an overall rise in basic pension by a factor of 3.63 for pensioners who retired prior to November 2002.

The demand for one more chance for Contributory Provident Fund (CPF) optees to switch to pension has however been rejected.

About 2600 people opted for provident fund.

ET has reviewed the government note.

Successive RBI governors in the past two decades have raised this issue with the government but successive governments had so far turned a blind eye.

Last year, the employees threatened to observe mass casual leave which forced the then Governor Urjit Patel to raise the issue with the government again. In October 2017, he had written to the ministry recommending one more option to CPF retainers and improvement of pension.