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Please Circulate
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11.07.2026
To: Leaders and Members of Affiliate Associations
Extension of benefits which are extended to pensioners of the Central Government to Bank Pensioners – Communication dated 20.05.2026.
In the social media, a letter purported to be written by Department of Financial Services to Indian Banks Association is being circulated. On Department of Financial Services had previously written a letter to all Public Sector Banks to align Commutation Table with that of 2006 Commutation Table applicable to pensioners of Govt. of India, Taking advantage of this letter, a request has been made not to restrict alignment to provisions regarding the issue of Commutation, but to extend such alignment to all other provisions in Central Civil Services Pension Rules.
It is found that a large number of improvements have been made, State Bank Retirees’ Association is proud that it has noticed and recognized such improvements. Perhaps, it is the only organization to initiate appropriate measures. The issues covered include following benefits:
a. Commencement of Qualifying Service
b. Counting of Leave for Qualifying Service
c. Eligibility for full Pension after Ten Years of Service
d. Additional Pension on Attaining the Age of Eighty Years
e. Additional Family Pension
f. Eligibility of Unmarried, Widowed or Divorced Daughters
g. Commutation on Subsequent Revision of Pension
h. Period for Commutation without Medical Examination
It is first ever endevour and beginning has been made.
Dr. A Ananthakrishna Rao C N Prasad
President General Secretary
C N Prasad
President General Secretary
Ref No.: PR1995/GoI/931 Date: 11th July, 2026
The Secretary,
Dept. of Financial Services,
Ministry of Finance,
Respected Sir,
Extension of benefits which are extended to pensioners of the Central Government to Bank Pensioners – Communication dated 20.05.2026.
We invite your kind attention to the purported communication bearing eF. No. 9/9/5/2026-IR dated 20.05.2026, addressed to the Indian Banks' Association, regarding Restoration of Commuted Pension in pursuance of the common judgment dated 04.12.2024 of the Hon'ble Punjab & Haryana High Court.
2. We also invite your attention to the following observation contained in the aforesaid communication:
"It is also to be noted that the Banks' (Employees) Pension Regulations, 1995 governing pension-related matters of bank employees are broadly based on the Central Civil Services (Pension) Rules. The 8th Central Pay Commission will accordingly take care of a decision on the period for restoration of commutation."
3. The above communication unequivocally reiterates that the pensionrelated provisions governing bank employees are broadly based on the Central Civil Services (Pension) Rules. It is well established that whenever the recommendations of a Central Pay Commission are accepted by the Government, with or without modifications, the corresponding amendments are also carried out in the Central Civil Services (Pension) Rules and the Central Civil Services (Commutation of Pension) Rules.
4. This is not the first occasion on which the Government has expressed such an intention. Earlier, vide F. No. 8/2/2021/BO.I dated 28.06.2021, the Department of Financial Services advised the Indian Banks' Association to align the Commutation Table under the Banks' (Employees') Pension Regulations, 1995 with that applicable to Central Government pensioners. Public Sector Banks were also advised to amend the Pension Regulations accordingly.
5. These communications create a legitimate expectation among bank pensioners that the Banks' (Employees') Pension Regulations, 1995 should progressively be aligned with the Central Civil Services Pension Scheme. They clearly reflect the policy intention
6. of the Government. Consequently, the following benefits available under the Central Civil Services (Pension) Rules also deserve to be extended to bank pensioners by making suitable amendments to the Banks' (Employees') Pension Regulations, 1995:
Rule 11 of the Central Civil Services (Pension) Rules provides that qualifying service commences from the date an employee takes charge of the post to which he or she is first appointed, whether in a substantive, officiating or temporary capacity, provided such service is followed without interruption by substantive appointment. In contrast, the Banks' (Employees') Pension Regulations, 1995 reckon qualifying service only from the date of permanent appointment.
Rule 21 of the Central Civil Services (Pension) Rules provides that all leave for which leave salary is payable and extraordinary leave granted on medical grounds shall count as qualifying service. Even extraordinary leave on other grounds may count as qualifying service if the competent authority specifically directs so while sanctioning such leave. Under the Banks' (Employees') Pension Regulations, 1995, however, extraordinary leave without pay is restricted to a maximum of 365 days, and that too only if specifically permitted by the sanctioning authority.
Rule 44(1) of the Central Civil Services (Pension) Rules provides that an employee completing ten years of qualifying service becomes entitled to pension calculated at 50% of emoluments or average emoluments, whichever is more beneficial. However, voluntary retirement at the employee's own request continues to require twenty years of qualifying service.
The Central Civil Services (Pension) Rules provide for payment of additional pension to pensioners attaining the age of eighty years, as under:
Age of Pensioner
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Additional Pension
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80 years to less than 85 years
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20%
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85 years to less than 90 years
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30%
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90 years to less than 95 years
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40%
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95 years to less than 100 years
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50%
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100 years and above
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100%
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Rule 50(3)(a) similarly provides for payment of additional family pension/compassionate allowance to family pensioners on attaining the age of eighty years and above, on the same pattern.
Rule 50 also extends family pension to an unmarried, widowed or divorced daughter (including an adopted daughter, stepdaughter and a daughter born after the retirement of the pensioner), subject to the prescribed conditions relating to dependency and livelihood. Corresponding provisions deserve to be incorporated in the Banks' (Employees') Pension Regulations, 1995 wherever necessary.
Rules 6 and 10 of the Central Civil Services (Commutation of Pension) Rules, 1981/2021 provide that where pension is revised subsequently for any reason, the commuted portion relatable to the additional pension is recovered only from the date of payment of the additional commuted value. Restoration of such commuted portion is made automatically after 180 months from the respective date of payment without requiring any fresh application.
Rule 13 provides that where pension itself is sanctioned subsequently, the oneyear period during which commutation is permissible without a medical examination is reckoned from the date of sanction of pension and not from the date of retirement.
The above list is only illustrative and not exhaustive. Several other provisions also require suitable alignment.
6. From the above communications, it is evident that the intention of the Government is that the Banks' (Employees') Pension Regulations, 1995 governing pension-related matters should broadly conform to the Central Civil Services (Pension) Rules. We respectfully submit that this intention cannot be confined only to matters relating to commutation of pension. The same principle should extend to all pensionary benefits wherever corresponding provisions exist under the Central Civil Services Pension Scheme. It is, therefore, our legitimate expectation that the Banks' (Employees') Pension Regulations, 1995 should be comprehensively aligned with the Central Civil Services Pension Scheme.
7. We may also respectfully submit that the Hon'ble Supreme Court, in Civil Appeal No. 5525 of 2012 and connected matters, by judgment dated 13.02.2018, directed extension of pensionary benefits available under the Reserve Bank of India Pension Scheme to employees of Public Sector Banks. Under the Reserve Bank of India Employees' Pension Regulations, 1990:
• pension at 50% is admissible after completion of ten years of qualifying service;
• proportionate pension is payable to employees with qualifying service between ten and twenty years;
• the provisions relating to commencement of qualifying service and counting of qualifying service are already aligned with those under the Central Civil Services (Pension) Rules.
Accordingly, extension of the above benefits would also be in consonance with the judgment of the Hon'ble Supreme Court dated 13.02.2018.
8. In view of the foregoing, we earnestly request your good office to initiate suitable action for aligning all provisions of the Banks' (Employees') Pension Regulations, 1995 with the Central Civil Services Pension Scheme wherever differences presently exist, including the matters specifically enumerated above. Such action would give effect to the policy intention repeatedly expressed by the Government and ensure parity in pensionary benefits.
We shall be grateful if the necessary amendments are initiated and implemented at the earliest.
Thanking you,
With regards,
(C N Prasad)
General Secretary
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The Financial Intelligence Unit–India (FIU-IND) has earned another significant international recognition with its case regarding a large-scale cyber fraud, securing the Runner-up position at the prestigious Best Egmont Case Award (BECA) 2026, presented during the Egmont Group Plenary held in Baku, Azerbaijan, under the dynamic leadership of Shri Amit Mohan Govil, Director, FIU-IND.
The Best Egmont Case Award is one of the highest recognitions within the Egmont Group, acknowledging outstanding operational cases that demonstrate excellence in financial intelligence, international cooperation and contribution to combating money laundering and terrorist financing. FIU-IND's case was selected as one of only two finalist cases among submissions from the Egmont Group's 182 member jurisdictions before being adjudged the Runner-up at the Plenary.
The case originated from intelligence shared by the Indian Cyber Crime Coordination Centre (I4C) regarding a large-scale cyber fraud. Subsequent financial intelligence analysis by FIU-IND uncovered a sophisticated money laundering network involving cyber fraud proceeds of approximately ₹868 crore, more than 5,000 mule bank accounts, and complex cryptocurrency transactions spanning multiple jurisdictions.
The investigation demonstrated the critical role of international cooperation through the Egmont Secure Web (ESW), with FIU-IND exchanging financial intelligence with multiple counterpart Financial Intelligence Units to trace cross-border cryptocurrency transactions and identify the global money laundering trail. This timely intelligence sharing significantly strengthened the investigation and highlighted the importance of international collaboration in addressing transnational financial crime.
Based on FIU-IND's Operational Analysis Report, the Directorate of Enforcement (ED) initiated extensive enforcement action, conducting searches at 13 locations, seizing ₹47 lakh in cash and cryptocurrency (USDT) valued at approximately ₹13.6 crore, attaching assets worth ₹8.67 crore, and filing two Prosecution Complaints under the Prevention of Money Laundering Act (PMLA), 2002.
The recognition reflects India's growing leadership in financial intelligence and reinforces FIU-IND's commitment to strengthening the country's Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) framework through advanced operational analysis, robust domestic coordination and effective international intelligence sharing.
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SR/KMN.
Regn No.PN 4769 (Regd under The Trade Unions Act, 1926)
(Affiliated to Bharateeya Mazdoor Sangh)
BMS Office, Vishwakarma Bhavan, 185, Shaniwar Peth, Pune 411030
President: Prabir Kumar Mazumder Mob No: 9330337430 Prabir.majumdar@gmail.com Working President: Arvind Mittimani Mob No: 9868878667 arvindmittimani@gmail.com
General Secretary: Rajiv Kumar Sharma Mob No: 9811902770
rajivkumarsharma1558@gmail.com
Date: 10th July 2026
To, The Executive Director (OS) L. I. C. of India, Central Office, Yogakshema, west Wing, 4th Floor, Nariman Point, Mumbai-400021
Subject :TAXABILITY OF GSLI SAVINGS ACCUMULATIONS ON RETIREMENTS
Dear Sir,
Refund of GSLI Savings Accumulations on retirement is FULLY EXEMPT from Income Tax under section 10(10D) of Income tax act as proceeds of Insurance Policy. However, while filing Income tax return under E-portal of Income Tax Dept., there is no provision to show exemption u/s 10 (10D), as it is a reporting item only, like income from Agriculture, Refund of P. F. Accumulations on retirement etc. Because of this reason, GSLI Savings Accumulations should NOT be reported by LIC to Income Tax Dept.
However, we have observed that, all Divisional Offices across India are wrongly reporting this item as Income and adding it in Gross Total Income and thereafter showing "Any other exemption under Section 10 (Item no. A 2(h) of form no. 16) [which is not possible in E-portal]. Due to this mistake or misunderstanding on the part of Divisional Offices, many retired employees are required to pay Tax on income which is not taxable.
Now, the only remedy available with Divisional Offices is to reduce the reported income of the concerned retired employee (to the extent of GSLI Accumulations) by filing revised Quarterly Returns for the quarter in which that income is paid. Since 31/07/2026 is the last date for filing Income Tax Returns, revised QLY returns should be filled by the Divisional Offices as early as possible. After filing of revised QLY returns, Income Tax Dept. takes 2/3 days to reflect the correct income on their E -portal.
We request you to kindly instruct all offices to take necessary corrective action in cases of employees retired during the financial year 2025-26.
Further, we also request you to make modifications in E-feap Terminal Benefits Module, so that amount paid towards refund of GSLI Savings Accumulations will be excluded while filing QLY returns by the offices paying terminal benefits.
Thanks & Kind Regards
Rajiv Kumar Sharma
General Secretary
The LIC Employees Pension Rules came into effect from 11/1993 and as per Rule no. 5, LIC created Pension Fund and a Trust was created to monitor and manage the Pension Fund. However, the Pension Fund yearly balance and Pension pay out details were not available in the public domain. The Accounting Standard 2005 (AS 2005) made the disclosure of Pension Fund details compulsory in the public domain.
With the above AS 2005 coming into effect, LIC started including Pension Fund details also in their Annual Report – which is a public document. However, the Income and Expenses Statement and Balance Sheet of Pension Fund statements were not made available. Hence, the following Statement is prepared for the information of all members based on the Data available in LIC Annual Reports & obtained under RTI by Sri Santosh Bhat.
(Amounts in Crores)
AS ON |
PENSION FUND In Rs in Crores |
Benefit paid (Annuit y purchas e price + CV paid) |
CONTRIBUTIONS |
INTEREST EARNED + Actuarial Gain |
Actual Pension Pay-out (obtained under RTI by Sri Santosh Bhat) |
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|---|---|---|---|---|---|---|
Contributi on by Employee |
Additional Contributio n by LIC |
|||||
31-03-2006 |
NO DATA IS AVAILABLE |
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31-03-2007 |
1,912-61 |
Not available |
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31-03-2008 |
3,272-79 |
978-62 |
978-62 |
1,732-78 |
(-)372-79 |
Not available |
31-03-2009 |
5,632-93 |
443-13 |
158-83 |
1,993-88 |
650-56 |
Not available |
31-03-2010 |
7,129-36 |
501-71 |
165-28 |
2,353-95 |
521-09 |
Not available |
31-03-2011 |
12,698-49 |
637-76 |
444-90 |
5,085-98 |
676-01 |
475-94 |
31-03-2012 |
16,533-58 |
569-75 |
267-35 |
3,710-34 |
447-15 |
585-41 |
31-03-2013 |
21,073-09 |
1,514-66 |
268-89 |
3,654-34 |
2,110-94 |
688-86 |
31-03-2014 |
27,038-98 |
1,025-58 |
272-77 |
4,769-21 |
1,949-49 |
715-41 |
31-03-2015 |
32,578-13 |
1,277-96 |
340-37 |
4,037-43 |
2,431-91 |
839-42 |
31-03-2016 |
38,925-12 |
973-05 |
1,002-34 |
3,589-25 |
2,728-45 |
919-09 |
31-03-2017 |
45,109-52 |
2,307-57 |
526-16 |
4,668-51 |
3,297-30 |
1,066-92 |
31-03-2018 |
53,904-00 |
1,404-90 |
717-22 |
5,921-05 |
3,561-11 |
1,143-49 |
31-03-2019 |
61,111-31 |
2,192-45 |
507-44 |
4,319-74 |
4,572-58 |
1,345-02 |
31-03-2020 |
70,564-19 |
5,273-13 |
524-83 |
*7,465-24 |
6,735-94 |
1,624-69 |
31-03-2021 |
81,937-79 |
4,298-57 |
964-26 |
*9,106-48 |
5,601-43 |
1,808-20 |
31-03-2022 |
94,386-86 |
7,823-53 |
1,842-68 |
*12,342-08 |
6,084-46 |
2,410-10 |
31-03-2023 |
1,09,054-83 |
7,504-29 |
419-76 |
*15,707-31 |
7,302-70 |
Not obtained |
31-03-2024 |
1,22,561-60 |
10,998-18 |
799.84 |
**14,982-29 |
8,722-82 |
Not obtained |
31-03-2025 |
1,28,717-94 |
10,156-66 |
1,464-92 |
**5,026-93 |
9,821-15 |
Not obtained |
31-03-2026 |
1,35,846-56 |
10,770-34 |
1,108-87 |
**5,812-30 |
10,852-51 |
Not obtained |
NOTES :
*Includes Amotisation amount of Rs.2,224-93 Cr due to OMOP. (Total cost is Rs.11,124-66 Cr). ** Includes Amortazation amount of Rs.1,856-08 Cr / year due to FP increase to 30%. (Total Cost is Rs.11,959-20 Cr)
BELGAVI Compiled by
09.07.2026 C T JOSHI
