According to a recent circular issued by RBI, all the pension-paying banks should compensate pensioners, at a fixed rate of 8% per annum for any delay in credit of their original pension, revised pension or any pension arrears thereon after the said due date.

RBI has issued the said circular because there was a number of complaints regarding unreasonable delay in disbursement of pension and arrears. The circular also states that it shall be applicable for delayed payments after 1st October 2008, and any interest, revision or arrear shall be credited to his account without any claim being raised on the bank, as soon the bank can afford the credits.

RBI has also advised pension-paying banks to put in place a mechanism to obtain copies of pension orders, as soon as they are passed directly from the authorities and make the payment without waiting for any further instructions from RBI so pensioners could get the benefits as soon as they become eligible for the same. Further, suitable arrangements shall be made to place the arithmetic and other details about pension calculations on the web, which is to be made available to the pensioners on the internet or on branches, periodically.