The Reserve Bank of India (RBI) has authorized Bandhan Bank to pay pension to retired railway employees. According to a statement issued by private lender Bandhan Bank, the bank will soon integrate its system with the Railway Ministry to conduct the pension disbursement process. This approval from RBI will provide the bank access to about 50,000 retirees every year in 17 regional offices and eight production units of Railways across the country.
Debraj Saha, Head (Government Business), Bandhan Bank, said, “Indian Railways is one of the largest employers in the country. This will help pensioners get access to competitive rates offered by the bank and other products of the lender.
Pension distribution rules
According to East-Central Railway, retired employees are paid by adding the amount of interest added from time to time on the total amount of deposited contribution. The same rule applies to employees taking voluntary retirement. The condition to be eligible for pension is that the railway employee must have been in service for at least 10 years or more in a permanent or temporary post.
