Government revises pension for retired RBI employees

Government revises pension for retired bank employees

The Union government has approved the revision of pension for retired Reserve Bank of India (RBI) employees. According to a notification dated July 13, the RBI has said that the revised amount will be applicable for people, who retired before November 1, 2017.

The existing basic pension amount of Rs 100 will be revised to Rs 163. The revised amount will be paid from June 2023, according to the circular. However, no payment of arrears will be made for the period prior to June 2023.

Earlier, the Eastern Maharashtra Bank Retirees’ Association requested the government to expedite pension updation, which has been pending for the last 27 years.

In July 2020, around 8.5 lakh bank employees got a 15 percent increase in their salary packages after the Indian Banks' Association (IBA) and the United Forum of Bank Unions (UBFU) signed a Memorandum of Understanding (MoU) to settle the three-year-long contentious issue of wage revision. As of November 1, 2017, banks had to pay around Rs 7,900 crore for the wage revision.

The pension scheme was implemented in banks in 1995. Since then, there have been eight industry-wide bipartite wage agreements, according to a report by Business Line.