Reserve Bank has since allowed the left over CPF optees- serving and retired, to exercise one more option for pension. Accordingly the retired employees of RBI who had earlier retained CPF option, shall have to refund amount of Bank’s contribution to Provident Fund with accrued interest paid to them at the time of their retirement, along with simple interest @3% per annum calculated from the date of receipt of the amount by the employee till the date of refund to the Bank . They shall exercise their option for joining the Pension Scheme in on or before December 17, 2020. Eligible Retired employees can apply for commutation value of pension. Commutation will be on the basis of Basic Pension at the time of retirement; but will be restored only on completion of 15 years from the date of commutation. After completion of all formalities, eligible retired employees family members will start drawing pension with effect from July 1, 2020. No arrears of pension will be paid for the period prior to July 1,2020.

Dearness Relief to RBI Retirees

(August 2020 to Jan 2021)

One More Option for Pension

You will recall that the Basic Pension of Pensioners in RBI has been updated by bank in March 19, by applying relative multiplying factors. However no arrears was paid on updation of the pension.

Bank has since allowed the left over CPF optees, serving and retired, to exercise one more option for pension. AC dated 14-9-2020, has been issued followed by detailed guidelines:

1. Retired employees of the Bank who had earlier retained CPF option, shall have to refund amount of Bank’s contribution to Provident Fund with accrued interest paid to them at the time of their retirement, along with simple interest @3% per annum calculated from the date of receipt of the amount by the employee till the date of refund to the Bank.


2. They shall exercise their option for joining the Pension Scheme in on or before December 17, 2020.


3. Eligible Retired employees may apply for commutation value of pension. (Those who retired more than a year ago will have to submit Medical Certificate). They can set-off the refund of Provident Fund amount along with the interest against the amount of commutation value of pension.


4. Commutation will be on the basis of Basic Pension at the time of retirement; but will be restored only on completion of 15 years from the date of commutation


5. Eligible family members of deceased employees, shall exercise their option for joining the Pension Scheme. However they cannot commute pension.


6. After completion of all formalities, eligible retired employees family members will start drawing pension with effect from July 1, 2020. No arrears of pension will be paid for the period prior to July 1,2020


7. Retirees have to submit the option related forms to the office from where retired. They can however send the scanned copies of the relevant forms now and submit the hard copies along with the refund on hearing from the Bank.

Efforts made but results pending

1. Revision of Family Pension: Basic Pension of RBI Pensioners in RBI has been updated by bank in March 19, by applying relative multiplying factors. However, the bank has so far not revised the Family Pension, which as a consequence, should have been derived on the basis of deceased pensioners’ revised basic pension.


2. Similarly the Ex-gratia payment to those handful of super senior citizens who retired prior to 1986 has NOT been revised so far.


3. The Bank is yet to implement the system of enhancing the basic pension of super senior RBI pensioners on par with the Central Government pensioners whose basic pension stands revised by adding 20, 30, 40, 50 and 100% on attaining the age of 80,85,90,95 and 100 years.


4. various anomalies on taking last month’s basic pay instead 10 months average pay in computing basic pension and reduction of service for full pension from 33 to 20 years prospectively remain unresolved.