The Reserve Bank of India has given a big relief to banks on Monday on the issue of family pension liability. RBI has allowed banks to revise the additional liability on account of revision of family pension for 5 years commencing from 2021-22. However, in this case, the RBI has also made it clear that the accounting policy to be followed in respect of ‘notes to account’ in the financial statements will also have to be disclosed.
Let us inform, the Indian Banks Association had requested the Reserve Bank of India in this regard. After the revision in family pension, the liability of many banks will be very high, which they will not be easy to pay for a year. Sunil Mehta, CEO, Indian Banks Association said that 1.5 family pensioners will benefit from this.
He tweeted and wrote, ‘Thank you to the Finance Minister for approving the family pension. The Reserve Bank of India has also accepted our request for repayment of the loan. 1.5 lakh family pensioners will get this benefit.
On behalf of the banking industry our sincere thanks and gratitude to #FM ma’am, #DFS and #RBI. @PIB_India @DFS_India @RBI (2/2)
— IBA_Chief_Executive (@ChiefIba) October 4, 2021
What was the announcement regarding family pension
Finance Minister Nirmala Sitharaman made an important announcement regarding the family pension of public sector bank (PSB) employees. Under this, the amount of pension received by the family after the death of the bank employee was increased. In fact, the monthly family pension for the family of deceased employees of the bank has been increased to 30 percent of the last basic pay of the employee. With this decision, the monthly family pension will be increased from Rs 30,000 to Rs 35,000.
