Govt raises family pension for PSB employees employer contribution to NPS also increased
Mumbai Aug 25 PTI Admitting that family pension for bank employees is at a paltry level the government on Wednesday announced to raise the same to 30 per cent of the last-drawn salary Earlier kin of a deceased PSB employee used to get a maximum of Rs 9284 per month as a family pension said Department of Financial Services Secretary Debasish Panda The cap has been completely removed and a uniform slab of 30 per cent at the last-drawn salary will be entitled as family pension Panda told reporters here admitting that the earlier levels were paltry This would result in the family pensions rise to as high as Rs 30000-Rs 35000 a month Panda said Similarly the ministry has also decided to increase the employers contribution in New Pension Scheme NPS to 14 per cent of the salary from the current 10 per cent he said Earlier Finance Minister Nirmala Sitharaman expressed her satisfaction at public sector banks PSBs performance in the past few years and appreciated that many of them have come out of the RBIs prompt corrective action framework Panda said a dozen PSBs have become leaner and started delivering profits which have upped the investor confidence in them and made them self-dependent for capital raising He said that since last year the banks have collectively raised over Rs 69000 crore including Rs 10000 crore in equity and are in the process of raising another Rs 12000 crore at present On the governments plans to reduce stakes in insurers Sitharaman said the government will go down to having minimum holdings in such companies She also asked the employees not to fear anything saying the government is sensitive about their concerns When asked about the reports of government mulling insurance bonds as an alternative to bank guarantees Sitharaman said it was just a suggestion that had come from the industry Meanwhile giving the progress on the National Asset Reconstruction Company Panda said the entity has been registered and the Indian Banks Association has already approached the Reserve Bank of India RBI for licence We expect that licence to come in soon Assets to be transferred have already been identified process of getting the inter-creditor agreement is also in the works CEO has been appointed and staff has been put in place he said Panda added that the government guarantee is not a concern but remains under consideration PTI AA HRS hrs
Mumbai Aug 25 PTI Admitting that family pension for bank employees is at a paltry level the government on Wednesday announced to raise the same to 30 per cent of the last-drawn salary Earlier kin of a deceased PSB employee used to get a maximum of Rs 9284 per month as a family pension said Department of Financial Services Secretary Debasish Panda The cap has been completely removed and a uniform slab of 30 per cent at the last-drawn salary will be entitled as family pension Panda told reporters here admitting that the earlier levels were paltry This would result in the family pensions rise to as high as Rs 30000-Rs 35000 a month Panda said Similarly the ministry has also decided to increase the employers contribution in New Pension Scheme NPS to 14 per cent of the salary from the current 10 per cent he said Earlier Finance Minister Nirmala Sitharaman expressed her satisfaction at public sector banks PSBs performance in the past few years and appreciated that many of them have come out of the RBIs prompt corrective action framework Panda said a dozen PSBs have become leaner and started delivering profits which have upped the investor confidence in them and made them self-dependent for capital raising He said that since last year the banks have collectively raised over Rs 69000 crore including Rs 10000 crore in equity and are in the process of raising another Rs 12000 crore at present On the governments plans to reduce stakes in insurers Sitharaman said the government will go down to having minimum holdings in such companies She also asked the employees not to fear anything saying the government is sensitive about their concerns When asked about the reports of government mulling insurance bonds as an alternative to bank guarantees Sitharaman said it was just a suggestion that had come from the industry Meanwhile giving the progress on the National Asset Reconstruction Company Panda said the entity has been registered and the Indian Banks Association has already approached the Reserve Bank of India RBI for licence We expect that licence to come in soon Assets to be transferred have already been identified process of getting the inter-creditor agreement is also in the works CEO has been appointed and staff has been put in place he said Panda added that the government guarantee is not a concern but remains under consideration PTI AA HRS hrs
