RBI allows banks to adjust excess pension; signs swap deal with Bhutan

MUMBAI: Reserve Bank of India ( RBI) has allowed banks to adjust the excess or wrongful payments to pensioners with their accounts. In case the entire amount cannot be adjusted the pensioner can be asked to pay the balance amount, the central bank said.

The extra payments may also be adjusted with future pension payments in case pensioners express their inability to pay in instalments of 1/3rd, RBI said. This uniform procedure was spelt out after complaints from pensioners and in consultation with the Controller General of Accounts (CAG).

Separately, RBI also signed a multi currency swap agreement with Bhutan’s Royal Monetary Authority. Under the arrangement, Bhutan’s central banks can make withdrawals in US dollars, euros or Indian rupees in multiple tranches up to a maximum of US$ 100 million or its equivalent.

“This is expected to further economic co-operation between the two countries. The agreement is valid for a period of three years from the date of signing,” RBI said.

Under an agreement with South Asian Association for Regional Co-operation (SAARC) countries RBI offers an aggregate amount of $ 2 billion to Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka to make up for any balance of payments and liquidity mismatches till longer term arrangements are made.