2 Nov 2017 11:52 AM GMT
The Madras High Court has put interim injunction on levy of penalty for non-maintenance of minimum balance in pension accounts.The Madurai bench of Madras High Court granted the interim injunction on a petition filed by advocate S Louis seeking exemption of old-age pension accounts from such penalty.Advocate S Louis sought a direction against application of minimum balance criteria to...
The Madras High Court has put interim injunction on levy of penalty for non-maintenance of minimum balance in pension accounts.
The Madurai bench of Madras High Court granted the interim injunction on a petition filed by advocate S Louis seeking exemption of old-age pension accounts from such penalty.
Advocate S Louis sought a direction against application of minimum balance criteria to the accounts of old age pension receivers in nationalised banks or in the alternative, providing the minimum balance to such pensioners once and for all to enable them to receive full monthly pension without any deductions.
Relying on the news report about a 75-year-old woman paying Rs 350 penalty every month from the Rs 1,000 pension amount for not being able to maintain minimum balance in her bank account in Alangulam branch of State Bank of India, the petitioner said, "Such penalty to the poor abandoned senior citizen who have bank accounts only for the sake of receiving pensions is nothing but non-application of mind".
He also sent a representation to the manager of Alangulam branch of SBI, besides writing to RBI and the Ministry of Finance on October 10, suggesting against "deduction under the guise of penalty for want of minimum balance in account of old-age pensioners".
"The object of the Maintenance and Welfare of Parents & Senior Citizens Act cannot be allowed to be swayed away by merciless banking system," said advocate Louis suggesting that the amount deducted so far as penalty be remitted back to the accounts of the pensioners in all fairness.
The old-age pension scheme provides for Rs 1,000 monthly pension to persons above the age of 60 years in case they are affected with leprosy, blindness, paralysis etc and to persons above 65 years in case of household below poverty line.
The petition also called for Centre to "constantly monitor the activities of nationalised banks to the extent that welfare schemes like the old-age pension to the poor abandoned senior citizens are not interfered with technicalities and irrelevant banking norms".