RBI authorises Bandhan Bank to disburse pension to Railway employees

Private lender Bandhan Bank on Wednesday said it has been authorised by the Reserve Bank of India (RBI) to disburse pension to retired railways employees.

In a statement, the bank said the lender will shortly integrate its system with the Railways Ministry to operationalise the pension disbursement process.

This authorisation enables Bandhan Bank to disburse pension to all employees of Ministry of Railways who have retired from their service.

The mandate will give the bank access to around 50,000 retirees each year across 17 zonal offices and eight production units of the Railways.

Pensioners also get access to more than 1,640 branches and digital banking platforms of Bandhan Bank.

Debraj Saha, head (government business), Bandhan Bank, said: “Indian Railways is one of the prestigious and largest employers in the country.

Authorization to disburse pension to retired employees of railways provides an opportunity to serve them with the best products and services of the bank.

It also gives the retired employees an opportunity to enjoy the most competitive rates provided by Bandhan Bank.

This mandate by the Ministry of Finance, Railways and RBI is a testament of the confidence and trust placed by the regulators and government on our bank.

This new authorisation allows us to play a pivotal role in the efficient disbursement of pensions to Indian Railways retirees, contributing to their financial well-being during their golden years.

We are now better equipped to serve retirees in a more streamlined, secure, and prompt manner.”