Acknowledging that the family pension of bank employees is low, the government on Wednesday announced a similar increase in the 30 per cent final salary deduction.
Earlier, a relative of the deceased’s PSB used to receive an average of Rs 9,284 a month as a family pension, said Finance Secretary Debasish Panda.
“The fund has been completely eradicated and the 30 per cent equity line in the final deducted salary will be like a family pension,” Panda told reporters here, acknowledging that the initial rates were “low”.
This will result in the family pension increasing to Rs 30,000-Rs 35,000 a month, Panda said.
The department has also decided to increase the employer’s contribution to the New Pension Scheme (NPS) to 14 percent of the current salary increase from the current 10 percent, he said.
Earlier, Finance Minister Nirmala Sitharaman expressed his satisfaction with the performance of public sector banks (PSBs) over the past few years, and thanked that many of them had come out of the RBI’s corrective action framework.
Panda said the 12 PSBs had dwindled and started to generate profits that had boosted investors’ confidence and enabled them to become self-sufficient in raising money.
He said that since last year, banks have collectively raised more than Rs 69,000 million, including $ 1 billion equally, and are currently in the process of raising another $ 12,000.
Regarding the government’s plans to reduce insurance stakes, Sitharaman said the government would go down to having small businesses in such companies. He also called on workers not to be intimidated, saying the government was sympathetic to their grievances.
When asked about reports of the government’s collection of insurance bonds as an alternative to bank guarantees, Sitharaman said it was just a proposal from the industry.
Meanwhile, giving progress to the National Manufacturing Company, Panda said the organization had been registered and the Indian Banks’ Association had already approached the Reserve Bank of India (RBI) for a license.
“We expect the license to expire soon. The assets to be transferred have already been identified.
also read – Stocks on Wall Street edge up; S&P 500 still close to record
Panda added that the government’s guarantee was not a problem but was still being processed.
