Among the big gifts to the 7th pay commission employees of the Modi government, now the bank employees have got relief. The Reserve Bank of India (RBI) has allowed banks to amortize the additional liability on account of revision of family pension in five years starting from 2021-22.
RBI said that banks will have to properly disclose the accounting policy to be followed in this regard in the ‘Notes to Accounts’ of the financial statements. The relaxation has been given following a request from the Indian Banks’ Association (IBA) that it would be difficult for some banks to absorb the huge amount of liability in respect of revision of family pension in a year.
Indian Banks Association (IBA) CEO Sunil Mehta said that more than 1.5 lakh family pensioners are going to benefit! IBA CEO Sunil Mehta said in a tweet that RBI has accepted our request for amortization. More than 1.5 lakh family pensioners are going to be benefitted!
RBI said that IBA has approached us for amortization of increased expenditure as a result of 11th Bilateral Settlement dated November 11, 2020 and revision of family pension for employees of its member banks covered under the Joint Note. The central bank also said that the additional liability on account of revision of family pension as a result of the above settlement should be fully recognized and charged to the Profit and Loss Account in the current financial year.
