• Home
  • Salary Calculator
  • 7th Pay Commission News
  • DA News
  • OROP
  • DOPT Orders
  • Pension
  • PIB

Govtstaffnews

CENTRAL GOVERNMENT EMPLOYEES NEWS

  • Expected DA
  • Railways
  • Ministry of Finance
  • AICPIN
  • Press Release
  • NPS
  • CGHS
  • State Government News

Excess Commission charged by banks in Pension Accounts

January 27, 2016 By govtstaffnews.in Leave a Comment

Excess Commission charged by banks in Pension Accounts

Reserve Bank circular on Payment of Agency Commission on pension accounts – Transaction in pension more than allowed numbers would not fetch agency commission
Reserve Bank of India has issued a circular on Payment of Agency Commission on pension accounts.

RESERVE BANK OF INDIA

RBI/2015-16/294

DGBA.GAD.No. 2278/31.12.010/2015-16

January 21, 2016

The Chairman & Managing Director/

The Chief Executive Officer

All Agency Banks

Dear Sir/Madam

Payment of Agency Commission on pension accounts

As you may be aware, agency banks are being compensated at Rs. 65 per transaction for handling pension computation, payment and related services on behalf of Central and State Governments. As per the norms followed by the Government, a pensioner’s account should not have more than 14 credit transactions in a calendar year attributable to pension and related arrear payments, if any.

2. It has however come to our notice that certain banks are apportioning payment of arrears on account of Dearness Relief (DR) and/or delay in start of pension monthwise, thus, 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.

3. It is also reiterated 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.

4. 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/-).

Yours faithfully

(Manish Parashar)

Deputy General Manager

Click here to Download the Order…

READ: 7th Pay Commission – Hike the Basic Minimum pay by 44% – Review the Salaries after every 5 years – Unions

  • Was this Helpful ?
  • Yes   No

Related Posts:

  • EPFO makes payment of pension by March 30
  • Clarification on 3 Months EMI Moratorium on all Bank Loans
  • eNPS Online - Additional Modes of e-NPS exit & Withdrwal
  • Submission of pension claim during lock-down in respect of…
  • RBI: Moratorium of three months on EMI of all loans as on…
  • Activities under National Pension System & NPS Lite…
  • Permission of Partial withdrawals towards treatment of…
  • Submission of Form 15G and 15H for Financial Year 2020-21 -…
  • Reimbursement of Briefcase allowance in the DAD
  • Payment of salary to employees during the lockdown period…

Filed Under: Pension Tagged With: Excess Commission, pension

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

EMAIL NEWSLETTER

Reservation

What is Horizontal Reservation ?


What is Vertical Reservation ?

Latest News

DoPT Clarification dated 28-07-2020 : Regularization of absence during COVID 19 lockdown period

Grant of annual increment due on 1st July to the employees retiring on 30th June of the year

Delhi High Court Dismisses Plea against Freezing of DA and DR

Stepping up of pay of senior Assistants of CSS drawing less pay on promotion

Red Cross offering Engagement opportunities to retired Officers

More Latest News

DOPT Orders

Stepping up of pay of senior Assistants of CSS drawing less pay on promotion

Extension of tenure of officers appointed under the Central Staffing Scheme or through CSB procedure

iGOT (Integrated Govt. Online Training) courses on DIKSHA on COVID-19

Preventive measures for COVID-19 for PSUs and Financial Institutions

DOPT Order – Retirement of Government Servants on 31st March,2020

More DOPT Orders

PIB

Raksha Mantri Shri Rajnath Singh approves abolition of 9304 posts in Military Engineering Service

Special Ex-gratia Compensation Scheme for FCI Employees

1.37 Lakh EPF withdrawal claims to fight Covid-19 in less than 10 days

Income Tax to release all pending income tax refunds up to Rs 5 lakhs Immediately

‘Aadhaar’ will now be accepted as valid proof of date of birth in PF Records

More News

Ministry of Finance

No Hike in Dearness Allowance and Dearness Relief till July 2021

GPF Interest at the rate of 7.1 Percent from 1st April 2020

Submission of Form 15G and 15H for Financial Year 2020-21 – CBDT Clarification

Revision of interest rates for Small Savings Schemes – Ministry of Finance

Budget Allocation under Grant No.37 – Pensions for 2020-21

More News

CGHS

Extension of Validity of CGHS Card till 31st July 2020

CGHS Card validity extended till 30th April 2020 in view of the COVID-19

Reimbursement of OPD medicines to CS (MA) beneficiaries

Extension of Validity of CGHS Card in view of COVID-19

Validity period of empanelment of CGHS Health Care Organizations

More News

Copyright © 2017 - Central Government Employees News