The Government has given its “No Objection” to the Indian Banks’ Association to advise Public Sector Banks to implement the changes including 100% Dearness Relief (DR) Neutralization effective from 1st October 2023
100% Dearness Relief (DR) Neutralization
eF. No. 4/1/1/2022-IR
Government of India
Ministry of Finance
Department of Financial Services
Jeevan Deep Building, 3rd floor
Parliament Street, New Delhi – 110 001
Dated 5th October 2023
Indian Banks’ Association
World Trade Centre Complex
Centre 1, 6th floor, Cuffe Parade
Mumbai — 400 005
Subject: 100% Dearness Relief (DR) Neutralization to pre-2002 bank retirees.
Please refer to Indian Banks’ Association’s letter No. HR&IR / GOVT/BPS, dated 14.8.2023, on the above subject.
- In this connection, the undersigned is directed to convey ‘No Objection’ of the Government to Indian Banks’ Association, for advising Public Sector Banks, pending amendments to respective Bank Employees’ Pension Regulations, to pay w.e.f. 1st October, 2023: —
(i) DR at uniform rate as applicable to the lowest slab of basic pension in the existing DR frameworks, to all pre- 1/11/2002 retirees (100% neutralization of tapered DR);
(ii) Rs. 800.00 and Rs. 450.00 per month as ex-gratia amount, as a standalone Benefit, which will not attract any DR, to pensioners/family pensioners falling under 1st slab of basic pension and drawing highest DR, and 2nd slab of basic pension attracting second highest DR in the present framework, respectively. The ex-gratia amount shall be absorbed in future changes in pension structure, if any; and
(iii) No arrears shall be payable for the periods falling prior to the effective date.
(Vijay Sharikar Tiwari)
Under Secretary to the Government of India
Tel: 011- 23362349
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