The Government of India has stated in the Lok Sabha that there is currently no proposal under consideration to revise the basic pension of retirees of Public Sector Banks (PSBs).
The information was shared by Minister of State for Finance Pankaj Chaudhary in response to an unstarred question (No. 2709) asked by Konda Vishweshwar Reddy in the Lok Sabha on March 9, 2026.
10% Increase in RBI Pension Approved
Recently, the Government of India has increased the basic pension of RBI Employees by 10% along with dearness relief. The increase will be applicable with effect from November 1, 2022, and will benefit all RBI pensioners who retired before November 1, 2022.
Pension Revision in NABARD
The pensions of all NABARD employees who retired before November 1, 2017 have also been revised. The revised pension became effective from:
- March 1, 2019 for retirees who retired before November 1, 2012
- June 12, 2023 for retirees who retired before November 1, 2017
A pension is a regular payment given to employees after retirement. It provides financial support when a person stops working due to age. Pension is an important part of financial security for employees and their families.
Financial Security
Pension provides a steady source of income after retirement, helping retirees manage their daily expenses.
Support in Old Age
As people grow older, their ability to work decreases. Pension helps them live with dignity and independence.
Medical and Living Expenses
After retirement, medical expenses often increase. Pension helps cover healthcare and other essential costs.
Family Protection
Many pension schemes provide family pension, which supports the spouse or dependents after the employee’s death.
A strong pension system helps employees feel secure about their future and motivates them to work with confidence during their service years.
No Pension Revision Proposal for Public Sector Bank Retirees
When asked about the issue of basic pension revision for retirees of Public Sector Banks, whose pensions have reportedly not been revised for nearly three decades, the Government said that presently there is no such proposal.
Pension in SBI is governed by the State Bank of India Employees’ Pension Fund Regulations, 2014, which were framed with the approval of the Central Board of SBI.
In the case of nationalised banks, pension is governed by the Bank (Employees’) Pension Regulations, 1995, which were approved by the respective boards of those banks.
The government stated that these regulations do not contain any provision for revision of pension.
The Government said that although there is no provision for pension revision, the government said that pensioners of Public Sector Banks receive Dearness Relief (DR) on their pensions. This Dearness Relief is revised every six months, which provides periodic increases in pension payments.
In addition, as per the 12th Bipartite Settlement and the 9th Joint Note, monthly ex-gratia payments are also being provided by Public Sector Banks. This ex-gratia amount is paid in addition to pension or family pension to pensioners and family pensioners who became eligible to receive pension on or before October 31, 2022.
Government’s Current Position
The government concluded that no proposal to revise the basic pension of Public Sector Bank retirees beyond the current pension regulations is presently under consideration.
This means that while Dearness Relief and ex-gratia payments continue, there is currently no plan to change the basic pension structure for PSB retirees.
