SBI Finally Makes Amends in Pension Arrears Case after Moneylife Intervention
Moneylife Digital Team 03 October 2025
In August 2025, Moneylife reported the ordeal of a nominee, Geeta Aiyer, who fought an exhausting eight-month battle with State Bank of India (SBI) to claim her late mother’s lifetime arrears (LTA) of pension. Despite being the valid nominee, she was met with stonewalling, misinformation and even outright denial from SBI's Centralised Pension Processing Centre (CPPC) at Belapur, Navi Mumbai. Her persistence eventually led to an article in Moneylife, which exposed the inordinate delays and highlighted the lack of accountability in India’s largest bank. (Read: How a Nominee Fought 8 Months of SBI Red Tape To Claim Mother’s Pension Arrears)
 
That article turned out to be the turning point. Once the story was published, Moneylife’s managing editor brought the matter to the attention of the ethics executive in the office of the SBI chairman. The executive immediately acknowledged that the treatment given to Ms Aiyer was improper and initiated corrective action. This intervention by the top executives of SBI set in motion a series of steps that ultimately brought closure to the case.
 
Within a day of publication, both officials from CPCC, who had handled the matter, contacted Ms Aiyer—one asking her to withdraw the complaint, the other sending a message expressing regret. Shortly after, senior officers from SBI’s local head office (LHO) at Bandra-Kurla Complex (BKC), including the deputy general manager (DGM) and assistant general manager (AGM) for customer services and the branch head, visited her residence. They spent over an hour reviewing documents and hearing her account of how she was made to run from pillar to post. During this meeting, the officials agreed to consider compensating her for the long delay and also promised to arrange a face-to-face meeting with the CPPC staff responsible for her harassment.
 
By mid-September, SBI credited the interest due to her account. The credit entry itself was significant, as it clearly described the payment as ‘compensation for late receipt of lifetime arrears’. For Ms Aiyer, this was an acknowledgement not only of financial loss but also of the unjust treatment she endured. 
 
A week later, she was invited to the Bank’s iconic Horniman Circle headquarters in south Mumbai for a formal meeting. The gathering was unusually large—nine senior officers, including three DGMs and two AGMs, were present, along with the two CPPC staff members who had previously dismissed her claims.
 
At the meeting, Ms Aiyer presented meticulous documentation showing the scale of indifference she had faced: 13 unanswered follow-up emails, multiple visits to Belapur and official letters that falsely stated she was not entitled to arrears. She also drew attention to broader issues—landline calls going unanswered, officials refusing to meet customers in person, unsigned letters sent out through office boys to avoid accountability and the lack of a proper customer interface. 
 
When confronted with this evidence, the two CPPC staff had no defence beyond repeated apologies. Senior officers present at the meeting admitted to lapses and assured her that processes would be reviewed. Ms Aiyer requested that SBI make its pension arrears procedures visible and transparent, preferably by publishing them on its website, so that others are not forced to go through the same ordeal.
 
While the arrears were eventually paid with compensation to Ms Aiyer, this case highlights much larger concerns. Pensioners and nominees are often elderly, financially dependent, or not equipped to take on protracted bureaucratic battles. 
 
Many may not even know how to escalate matters, and this case, too, may have ended in silence, except for the long and meticulous battle by Ms Aiyer. It is telling that action came only after public exposure and direct involvement from the Bank’s highest levels. From the ground up, the nominee’s repeated complaints, visits and documents produced no results. 
 
The resolution is undoubtedly a victory for persistence and public accountability. Yet, it should serve as a wake-up call for SBI and other banks. Robust systems, transparent processes and empathetic handling of pensioners and their families cannot depend on exceptional interventions from the chairman’s office or the media. They must be built into everyday functioning at every branch and processing centre. 
 
The behaviour of bank officers was brought to the attention of the head office only because Moneylife escalated the matter. For thousands of others without similar visibility, such battles may remain unresolved. It is a stark reminder that in a system as vast as SBI’s, empathy and accountability must not be optional extras—they must be the foundation of customer service.
 
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Comments
krishnamoorthy.2701
1 month ago
In my earlier message, I had mentioned Pension Updation for SBI Pensioners..
In fact it applies to ALL Bank employees...
krishnamoorthy.2701
1 month ago
A matter relating to SBI Pensioners: Updation of Pension for SBI Pensioners is pending for over 30 years, despite clear-cut legal points.A legal battle is going on for a number of years. But the Govt (DFS) and IBA is not interested in settling the matter and deliberately dragging the issue. Thousands of Pensioners have expired, without enjoying updation of Pension. If an article can be written in Moneylife on this issue, may be the Govt will wake up to settle the matter.
svijay74in
1 month ago
Kudos to Moneylife for taking up and escalating the above issue to SBI higher ups ! We'll done !
gobindersingh1962
1 month ago
I am a retired officer MMGS-III from SBI. During my service time, my erestwise State Bank of Patiala Aur NRI branch - 50679 was merged with the SBI Aur - 11910nd being surplus officer, I was deputed to the other branch Naura -02434. Deputation allowance for some time was paid but after about 3 months, my deputation allowance was declined by the then AGM, reasons best known to him.

After about 9 months, I was again deputed for the previous center, where I again remained there at for about 4 months.

Neither the Bank paid me the deputation allowance nor any transfer allowance for which I was eligible. After my next transfer, the Bank put my name on the board of Roll of Honour.

I had sent number of letters to the CGM Chandigarh and Corporate Office Mumbai but all in vains.

I am a retired and senior citizen and can not fight with the Bank.

Can anyone help me ????.

Gobinder Singh Patiala

I am f
gourav.bbl
1 month ago
My grandmother family pension after death of my grandfather is stuck from 16 months too and now at final step in sbi cppc let's see what happens if they will give these last 16 months pension or not. Are these 16 months of non payment called Life Time Arrears?
sobubla
1 month ago
SBI is and was the most corrupt bank among all the banks operating in India. I had issues with SBI bank where they continued to deduct locket rent twice a year. They also charged me due in GST arrears when the first time GST law was introduced. When I finally noticed it I immediately lodged a complaint with SBI Uttarpara branch only to face negative response that all the locker rent was deducted following due process of SBI banking rules. I even mailed SBI headquarters in Mumbai where they responded with same answer. Finally when I threatened to lodge complaint with Banking Ombdusman and lodge a FIR against Bank manager at local Uttarpara police station against SBI Uttarpara Branch manager, he swung into action and reverted all the double deductions but not the GSR arrears with a pleasure that it is already deposited to Govt and ofcourse without any compensation.
asengullie
1 month ago
Thank you moneylife
BgEcmx
1 month ago
Whenever I have seen a bank make amends it is almost always coaxed into it - usually they are reluctant to even acknolwedge problems - leave alone fix it or apologize for it.

This goes above and beyond - so truly impressive on MoneyLife's part to be able to get the top management to accept the calamitous "service" they provided.

Because of MoneyLife - I have seen numerous articles highlighting the plight of customers who have to keep fighting even after winning court cases (or consumer court cases).

Good to see a change in the positive direction.
gopalakrishnan.tv
1 month ago
Money Life does a yeomen service to public by being a watch dog and exposing institutions doing wrongs and injustices to public . It is unfortunate to observe that the institutions entrusted with public money and having enlightened board so to say fail to do justice to public and miserably fail in providing effective and meaningful governance . Sorry to observe that individuals ignorance or absence of information through intimation or knowledge are being fully exploited by the institutions despite regulatory requirements , compliance systems and money life like organisations have to fight cases and get justice to the aggrieved persons . Sorry state of affairs . Hats off to Money Life for such wonderful social service and being helpful to public to get their entitled services .
skjonline
1 month ago
The story is incomplete without telling the proportion of penal action taken against accountable officers.
v.sasthamani
1 month ago
I am a retd AGM of SBI. Honestly SBI is one of the worst when it comes to customer service. Most officers are unfit to be officers. They are happy satisfying their bosses. They have been told in their training that SBI is a financial institution... my goodness it is not. It is a service organisation. SBI employees and officers need to focus on service to customers. However, in this case, finally SBI listened to Geetha and even arranged a meeting with all concerned as a mode of learning. That is good.
Jitendra B Parmar
1 month ago
Great job done by Moneylife Team. ????????????????????????
aiyerg
1 month ago
Thank you moneylife and Sucheta Dalal. You made a common woman look like a Queen.
ashoksahu.yahoo.com
Replied to aiyerg comment 1 month ago
I have problem that Sahara taken my money of Rs 2L but not returning.The website not responding properly.
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