Thursday, March 17, 2016

Recovery of excess payments made to pensioners



a)    As soon as the excess/wrong payment comes to the notice, the branch should adjust the same against the amount standing to the credit of his account to the extent possible including lumpsum arrears payment.

b)    If the entire amount cannot be adjusted from the account, the pensioner may be asked to pay the balance amount.

c)    In case the pensioner expresses his inability, the same may be adjusted from the future pension payments. For recovering the over-payment in instalments, 1/3rd of net (pension + relief) payable each month may be recovered unless the pensioner gives in writing to recover a higher amount. If the amount cannot be recovered due to his death or discontinuance of pension then action has to be taken as per the letter of undertaking given by him under the scheme.

d)    The pensioner should be advised about the details of overpayment/wrong payment and mode of its recovery.
Based on RBI Circular dt 17/03/16. Please visit www.rbi.org.in for any further clarification if required….. Poppy