The Reserve Bank of India has given a big gift to the banks. In the five years starting 2021-22, due to revision of family pension, revision of additional liability has been allowed. “Banks must accurately disclose the accounting policy to be followed in this regard in the Notes to Accounts of Financial Statements,” the IBI said. Let me tell you that this waiver has been granted following the request of Indian Banks Association (IBA). It will be difficult for some banks to settle their liability by revising the family pension in one year.

Revised Family Pension of Bank Employees as part of 11th Bilateral Settlement and Joint Note dated 11 November 20202. The regulatory approach to the issues has been examined, the RBI said. As an exceptional case, it has been decided that the banks can take action in this matter under the settlement.

The IBI said that if the profit and loss account is not fully charged during the financial year 2021-22. However, it can be waived for more than five years starting from the fiscal year ending March 31, 2022. This is subject to a minimum, 1/5 of the total amount being spent each year. IBA CEO Sunil Mehta expressed happiness over the RBI’s decision. He thanked the Reserve Bank by tweeting.

Just to say thank you #FM Ms. for the approval of family pension. #RBI Also accepted our request for forgiveness. More than 1.5 lakh family pensioners are going to benefit! (1/2)PIB_India DFS_India BIRBI

– IBA_Chief_Executive (hiefChiefIba) October 4, 2021

Just to say thank you #FM Ms. for the approval of family pension. #RBI Also accepted our request for forgiveness. More than 1.5 lakh family pensioners are going to benefit! (1/2)PIB_India DFS_India BIRBI

– IBA_Chief_Executive (hiefChiefIba) October 4, 2021