Delay in payment of pensionary benefits to the Ex-Servicemen: Finmin’s Instructions

Department of Financial Services, Ministry of Finance has criticised the UCO Bank, Jhajjar Branch on delay payment of pensionary benefits to the Ex-Servicemen.  The Ministry has taken this matter seriously and instructed to bank to not repeat such action in future.  The Ministry has also instructed to all pension paying banks to  be streamlined for timely release of pensionary dues to the Armed Forces pensioners.  The text of Ministry’s letter are reproduced below:-


Government of India 
Ministry of Finance 
Department of Financial Services 
(B.O.III Section) 
2nd Floor, Jeevan Deep Building 
10, Parliament Street, New Delhi-110 001 
07th June, 2013 

(i). The Chief Executives of all Pension Paying Banks.
(ii). The Chief General Manager, In-charge, Customer Service Department,
Reserve Bank of India, Central Office, Mumbai.

Sub.: Delay in payment of pensionary benefits to the Ex-Servicemen


I am directed to refer to the subject cited above and to say that a case of non-payment of ex-gratia amount  of Rs. 9 lakhs by the UCO Bank, Jhajjar Branch came to the notice of the Department of Financial Services with the approaching that there may be more cases of non- payment of pensionary benefits to ex-servicemen causing frustration and feeling of isolation in the minds of those who gave their best of life for defence of nation. Such instances may be easily lapped up by the media to paint a negative picture of the PSBs and the Government which could be avoided with a little alacrity on the part of the banking officials. 

2. It is therefore requested to kindly look into the matter on top priority basis by sensitizing the bank officials to be more prompt on payment of pensionary benefits to the ex-servicemen without any further delay and also to the CPPCs which need to be streamlined for timely release of pensionary dues to the Armed Forces pensioners. Action taken in this regard be intimated to this Department at the earliest. 

(Rakesh Kumar Gupta) 
Under Secretary 
Source: http://financialservices.gov.in


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  • Sir, when family pension word comes to my mind, 1971 WAR and crying widows come before my eyes.The Navy lost INS Khukery with men on board and few sailors.I cannot imagine loss in the Army. The finance ministry letter has brought little consolation.
    I request the Govt.to consider the pension for war wounded and Family Pensioners Pre- 1986 and PRE-2006 who are not paid Revised Pension with effect from 10.10.1997.Please do not pay for Service Pension. We will be happy.The morale of active Defence Personnel will be boosted. Regards, Daya Shanker Lal Srivastava Ex MCPO II , Mumbai (Mah.). (09869657053).

  • Anonymous 11 years ago

    Point to be noted. The concern of the finance ministry seems only the image of the PSU Banks, and not the pensioner. The letter should have highlighted the payment of penal interest by the bank as provided for in item 34 of Master Circular on Disbursement of pension by Agency Banks
    issued by RBI under letter No. RBI/2013-13/103, DGBA.GAD.No.H-
    4/31.05.001/2012-13 dated July 2, 2012 that pension paying banks should
    compensate the pensioner for delay in crediting the pension/family pension/
    arrears thereof by paying compensation at a fixed interest rate of 8 percent for
    the delay after the due date and the compensation shall be credited to the
    pensioner’s/family pensioner’s account automatically without any claim from
    the pensioner/family pensioner on the same day when the bank affords credit
    for revised pension/family pension/ arrears thereof in respect of all delayed
    pension payments made since October 1, 2008.