Regulatory Alerts2026-06-24
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Reserve Bank of India [Disbursement of Government Pension by Agency Banks (ABs)] First Amendment Directions, 2026
The Reserve Bank of India amends the Directions on Disbursement of Government Pension by Agency Banks (ABs) by substituting Chapter III and paragraphs 8 and 9. The amendment mandates that banks obtain the pensioner’s knowledge, consent, and prior notice before recovering excess pension amounts, and requires the implementation of a Board-approved recovery policy. For bank-attributed errors, the entire excess amount must be credited to the Government account immediately upon detection, while recoveries for government-attributed errors require express customer authorization if deducted from account balances. The directions also specify recovery methods, including limits on available balance or percentage of pension, and establish a cut-off period for initiating recovery actions.
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