RBI/2004/256
DGBA.GAD.No H-1246 /31.12.010/2003-04
June 18, 2004
The Chairman & Managing Director/
State
Bank of India and its Associates
Public Sector Banks
HDFC Bank Ltd. / UTI
Bank Ltd. /
Jammu & Kashmir Bank Ltd. /
IDBI Bank Ltd. / ICICI Bank
Ltd.
Dear Sir,
Payment of Turnover Commission - Pension Work
As
you are aware, Agency banks are disbursing pension on behalf of various Government
Departments as per the ‘Scheme of Disbursement of Pension through Public Sector
Banks’ and claiming re-imbursements from our Offices.
2.
It has been brought to our notice that some of the Agency banks are claiming reimbursement
of pension payment upfront and thereafter refund excess amount erroneously claimed
by them. Scrutiny of such refunds in one of our Offices revealed that banks disburse
pensions without taking proper care and when irregularity is detected, steps are
taken to refund. In this context, we would like to bring to your notice that the
Government accounts stand debited to that extent till the huge refunds are accounted
for in the books of Reserve Bank of India. The position is highly irregular and
may also lead to heavy outflow from banks in the nature of penal interest for
excess/double payment.
3. You are, therefore, advised to
take remedial steps to avoid such recurrences in future.
Yours
faithfully,
Sd/
(R
C Das)
General Manager