Government Pension: The decision was taken after Finance Minister Nirmala Sitharaman’s today’s meet with heads of public sector banks (PSB)
New Delhi: In a good news for salaried class, public sector banks’ (PSB) contribution for employee pensions under NPS has been hiked to 14 per cent. PSBs’ contribution for employee pensions under NPS hiked to 14 per cent from 10 per cent earlier, said Secretary of Department of Financial Services (DFS) as per a PTI report. However, employees’ minimum contribution under NPS will continue to remain at 10 per cent, DFS Secretary Debasish Panda added.
- After this, pubic sector banks’ NPS norms have reached the same threshold of the central government employees pension.
- The decision was taken after Finance Minister Nirmala Sitharaman’s today’s meet with heads of public sector banks (PSB) to review the financial performance of the lenders and progress made by them in supporting the pandemic-hit economy, as per PTI report.
- The meeting with MD and CEOs of PSBs assumes significance given the importance of the banking sector in generating demand and boosting consumption, PTI reported.
Highlights of FM Nirmala Sitharaman Meeting With MD, CEOs of PSBs
- PSBs have been requested to have interactions with exporters’ bodies to understand their requirements, FM Nirmala Sitharaman.
- Banks have been requested to work with state governments to push “one district, one export” agenda, said FM Nirmala Sitharaman.
- FM Sitharaman has also asked banks to extend assistance to the fintech sector.
- FM Sitharaman said that deposits piling up in states of eastern India, but credit needs to be expanded.
- Banks have been asked to create state-wise plans for north-east focusing on logistics, exports from the area, said FM Nirmala Sitharaman.
- Collectively, PSBs have done well and have come out of Prompt Corrective Action despite service extended during pandemic, FM Sitharaman said.
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