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7th Pay Commission Update: Government Increases Pension Slab of Bank Employees By 30%

Central Government increases the pension slab to provide relief to the families of bank employees. 7th Pay Commission bank employees to get 30% of the last drawn salary.

M Kanika
Rs 2000 & 500 Notes
Rs 2000 & 500 Notes

7th Pay Commission Big UpdateThe measure, according to Debashish Panda, Secretary, Ministry of Finance's Department of Financial Services, will enhance the pension payout for families from Rs 30,000 to Rs 35,000. Previously, the highest pension ceiling was Rs 9,284. 

The Indian Banking Association (IBA) had previously advocated that the family pension, which is paid at slab rates of 15%, 20%, and 30% for various kinds of retirees, be restructured without a ceiling. Thousands of bank employees and their families will profit from this recommendation, which was approved by the Finance Ministry.

Finance Minister Assessed Private Sector Banks Performance 

Apart from that, the government has requested that banks increase the employer's contribution to the pension fund from 10% to 14%. Nirmala  Sitharaman, the Finance Minister, had already assessed the performance of public sector banks. He met with the managing directors and CEOs of major public sector banks to discuss the industry's progress in generating demand and increasing consumption.

Banks Are Using Methods To Promote Loan Demands  

Banks would post loan offers in every district of the country, according to Sitharaman, in order to promote demand for loans. With the passage of time, businesses can now raise cash from sources other than the banking industry. Banks are using a variety of methods to raise revenue. These new factors must be investigated in order to target credit where it is needed. 

Banks Employees DA Increases By 27.79% 

The Dearness Allowance (DA) for bank staff and pensioners was doubled earlier this month. The new DA rate will be in place beginning in August and will last through October. This will apply to bankers who are paid according to the 11th BPS pay scale. In comparison to the previous quarter, bank employees' DA grew by 2.1% to 27.79%. 

There is great news for lakhs of central government employees. As Central Government Employees To Get Big Benefit From CTG Rule. The Centre has agreed to remove the cap on Composite Transfer Grant (CTG) in cases where the retiring employee settles at the last station of duty or within 20 kilometers of it. Until now, the Centre has paid one-third of the CTG to employees who settle at the last duty station or within 20 kilometers of the last duty station.

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