Damodaran Committee: Banks should deliver pensions for sick, disabled pensioners at their doorstep

RBI panel on customer services has also recommended that pensioners be allowed to submit annual life certificate at any branch of the bank

The Reserve Bank of India-appointed committee on bank customer services has recommended prioritised services for senior citizens and physically handicapped persons through effective crowd management.

According to the report of the committee that was submitted on Wednesday, pensioners should be allowed to submit their annual life certificate at any of the bank branches and not necessarily at the home branch and all such certificates ought to be maintained in a centralised database.

"The data relating to individual pensioners, the monthly certificates that pensioners would desire, should be available in a secure domain for immediate retrieval and usage," the report says.

The committee was headed by M Damodaran, former chairman of the Securities and Exchange Board of India. The recommendations, if implemented, will be a relief for senior citizens who otherwise have to travel long distances to get to the bank head office for such matters.

Moneylife has highlighted these issues regularly and recently reported that the committee was working on such pro-consumer steps. (Read, "RBI report on customer services expected to be pro-consumer")

Another important suggestion by the committee is that banks should make arrangements to deliver pensions to sick and disabled pensioners at their doorstep. It has also said that "there should be uniformity among banks as to the age for consideration of the longevity, based on which a pensioner's loan is calculated."

On the contentious issue of 'either' or 'survivor', the committee says that "on the demise of the pensioner, the existing 'either or survivor' pension account should become a single account in the name of the 'survivor' and the family pension should automatically be credited to such accounts. Similarly, all joint accounts with 'either or survivor' clause should become single accounts of the 'survivor' after the demise of the other joint account holder."

The committee also recommended that there should be an SMS alert service on the balance in accounts, to be sent at periodic intervals, as well as about due dates for submission of important documents. It also suggested that the customers list in the senior citizens category should be automatically updated based on the date of birth.

Other recommendations include the streamlining and fine-tuning of the functioning of Banks' Centralised Pension Processing Centres to ensure timely disbursal of pension, commencement of family pension on time and error-free calculation of pensions. It also said that "in line with the RBI Guidelines and Board approved Policies, there must be hassle-free settlement of amount dues to the nominee/legal heir, as and when required."




5 years ago

since Bank branches are under CBS, it makes sense that Pensioner should be able to submit life certificate at any branch of the bank, as specimen signature of the pensioner can be viewed at any branch


5 years ago

The Committee and its chairman is so blissfully divorced fro the ralities that one feels sorry. The ignominy and harassment that the pensioners, many in their last days, are subjected to by the bank officials cannot be expressed. Not only that, there atr managers who even compel the pensioners to come again and again for signing the prescribed forms and issuing life certificates.

Maruti to cut diesel engine exports to Hungary, focus on India

The company’s diesel engine plant at Manesar currently produces 2.8 lakh engines per annum but it needs about four lakh units for the Indian market

Looking to hit back at competitors with the new version of its premium hatchback Swift, Maruti Suzuki India (MSI) today said it will drastically cut exports of diesel engines to Hungary to concentrate on the Indian market.

The company, which has seen increased competition from new entrants likes Ford Figo, Toyota Liva and Volkswagen Polo, said it will increase production of the Swift to up to 18,000 units a month to reduce the waiting period. Honda’s upcoming Brio is also expected to add to the competition.

“We are reducing export of diesel engines significantly to cater to the domestic demand. Currently we export about 35,000 to 45,000 units every year to Hungary. We will reduce it to almost negligible levels in the next six months,” said Maruti Suzuki India (MSI), managing executive officer (Marketing and Sales) Mayank Pareek.

“The additional engine that we get (after cutting exports) will go for the Swift in India,” Pareek said.

With petrol prices going up, demand for diesel engine cars have soared. Most of the companies, which offer petrol and diesel variants of a car model are now witnessing demand in the ratio of 70:30 in favour of diesel cars.

MSI has invested over Rs550 crore on the development of the new Swift. It will be manufactured on an all-new platform.

“Production of Swift will be increased to about 17,000-18,000 units per month, from an earlier 10,000-11,000 units. Thus, the waiting period will come down to 2-3 months from 3-4 months earlier,” he said.

On the expected sales, Mr Pareek said it will be around 18,000 per month “but we will try to push for 20,000 per month.” Current sales of the Swift are around 12,000 units a month.

So far, the company has received bookings for over 30,000 units, he said, adding since its launch in 2005, Swift has clocked over 6 lakh units.

The new Swift will be powered by 1.2 litre petrol engines and 1.3 litre diesel engines.

Mr Pareek did not disclose the price saying it will be announced at the formal launch on 17th August, but sources said it will be about Rs30,000 more than the existing ones, which starts at Rs4.09 lakh and goes up to Rs5.38 lakh (ex-showroom Delhi).

The car will be produced at MSI’s Manesar plant, where unit ‘B’ will start operations in September with the production of the new Swift.

Maruti’s shares were trading at Rs1,200.75 (down 1.19%) during closing trade on the Bombay Stock Exchange.


Lanco bags Maha Tamil Project

LITL intends to set up power plant with a capacity of 2000MW

Lanco Infratech Limited (LITL), one of the fastest-growing integrated infrastructure enterprises and the largest IPP (independent power producer) in India, has emerged as the successful bidder and has been selected as the Mine Developer and Operator (MDO) for development, mining and operations of Gare Pelma II coal block of Maha Tamil Collieries Ltd (MTCL) and development of an associated power project.

MTCL is a joint venture company formed and owned by Tamil Nadu Electricity Board (TNEB)—77% holding—and Maharashtra State Mining Corporation (MSMC)—23%—for exploring, developing, mining, supply of coal and power from the Gare Pelma Sector II coal block located in Raigarh District, Chhattisgarh, having geological reserves of approximately 800 million tonnes. The bid envisages LITL to develop and operate the coal mine and setting up a power plant with 2000MW capacity.

Eight major companies including GMR, GVK, Jindal Power, L&T, Reliance Coal and Sterlite have participated in the bid called b¬¬y MTCL through a tender floated in July 2010.    

Shares of LITL were trading at Rs18.10 in afternoon trade on the Bombay Stock Exchange (BSE), down 2.95% from its previous close.


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