Sitharaman met heads of PSBs to review financial performance of the lenders and progress made by them to support the economy battered by COVID-19 pandemic.
The changes instituted are set to increased the pension payout to bank employees, with all of them set to get an even 30% of their pay. The Centre has also asked banks to increase the employer contribution to the pension corpus to 14%, from the current 10%.
“Pension payouts to bank employees could increase to Rs 30,000-Rs 35,000 from the earlier cap of Rs 9284,” Panda said.
The key highlights from the EASE 4.0 address:
- Bank employees’ pension pay out hiked to 30% of last-drawn salary
- Employer contribution to pension corpus now up to 14%, from 10% previously
- Banks asked to make specific plans for North East, Bengal, Odisha
- Centre estimates inflation will remain within 4-6% band.
- “Too early to say credit is not picking up,” said Sitharaman.
- Government to have some presence in life insurance, general insurance and reinsurance
- Duties reduced on number of products on edible oils to keep inflation in check
- Banks have approached RBI this week for license on NARCL
- Proposal to offer guarantee on bad loans is under consideration
- India may announce rules allowing companies to list overseas in the next budget in February