RBI tightens up guidelines on healing of excess pension payments
By ET BureauLast Updated: Jun 25, 2026, 01:19:00 AM IST
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Federal government pensioners will now have more powerful defense versus unforeseen reductions from their accounts. The Reserve Bank of India has actually mandated that banks need to notify pensioners and acquire their permission before recuperating any excess pension payments. 
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Mumbai: The Reserve Bank of India (RBI) on Wednesday directed banks not to recuperate excess pension payments from federal government pensioners without very first notifying them and, where needed, getting their permission, reinforcing safeguards versus abrupt debits from pension accounts.
In a modification to its pension dispensation instructions, the RBI disallowed the healing of excess quantity from the pension of a civil servant without the pensioner’s understanding and permission, or without a previous notification.
The reserve bank likewise asked banks to acquire a composed endeavor from pensioners at the time of account operation. According to the instructions, banks might take a “Letter of Undertaking from the pensioner to the effect that in case any excess pension is credited to the account of the pensioner, the pensioner is bound to refund the same to the bank upon receipt of a suitable notice from the bank.”
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