Family pension of PSB bankers hiked to 30% of last salary! Payout to increase by up to Rs 35,000
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Family pension of PSB bankers hiked to 30% of last salary! Payout to increase by up to Rs 35,000

By Jessica

New Delhi: The Department of Financial Services (DFS) on Wednesday (August 25) announced that the family members of deceased bankers, who were once employed with any public sector banks (PSBs), will now receive a pension of 30% of the last drawn salary of the official. The decision will increase the monthly pensions from the current cap of Rs 9,284 to over Rs 35,000 in some cases. 

Department of Financial Services (DFS) India Secretary Debasish Panda had announced the hike in the family pension during the launch of EASE 4.0 by Finance Minister Nirmala Sitharaman in Mumbai.  

The Indian Banks’ Association (IBA) had urged the government to increase the family pension of deceased employees. The banking organisation had suggested the Finance Ministry provide a pension equivalent to 30% of the last drawn salary of the deceased employee. 

Besides increasing the cap on family pensions, the Central government has also increased the contribution limit for PSB employees under the National Pension Scheme (NPS). Employees of the public sector banks can now invest up to 14% of their salary, up from the previous limit of 10%. 

Panda said that after winning the confidence of investors, Indian public sector banks are now raising their own resources. Currently, more than Rs 12,000 crore funding is in the process. Also Read: CCEA approves Rs 15,000 crore FDI proposal of Anchorage Infrastructure Investment Holding

Meanwhile, during the same event, Sitharaman launched the EASE 4.0 programme, which is aimed at institutionalising India’s banking sector in a cleaner and smarter way. EASE 4.0 – Enhanced Access and Service Excellence – is the next phase of the EASE reforms that were launched last year in January 2018. Also Read: Nirmala Sitharaman launches EASE 4.0, talks about fintech, credit demand, check top highlights from FM’s presser

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