Govt approves raising family pension of bank staff

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SME Times News Bureau | 25 Aug, 2021
The families of deceased bank employees will receive up to 30 per cent of the last drawn salary of the employee under the National Pension Scheme (NPS).

Contribution made by PSBs for employee pensions under the National Pension Scheme has been hiked to 14 per cent from the earlier 10 per cent.

So far, the pension under the scheme was capped at Rs 9,284. Speaking at a media briefing in Mumbai on Wednesday, the Secretary for the Department of Financial Services, Debasish Panda said that post raising of the banks' contribution family pensions of bank employees can go up to Rs 35,000.

"Proposal for enhancement of family pension and employer's contribution under the NPS is approved by FM. The benefits would now accrue to family pensioners," Panda said.

"Cap on pay is removed and uniform slab of 30 per cent will be in force. Pension can go as high as Rs 35000," he added.

Addressing the media, Finance Minister Nirmala Sitharaman said that during her interaction with the chiefs of Public Sector Banks, she directed them to interact with export promotion agencies as well as with bodies of industry and commerce so the requirements of exporters can be well addressed in time.

She also noted that with changed times, industries have the option of raising funds even from outside the banking sector.

"Banks themselves are raising funds through various avenues. These new aspects need to be studied to target credit where it is needed," she said.