New Delhi24 minutes ago
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The Personal Ministry has issued a clarification for Central Government pensioners that if they get excess pension due to the mistake of the bank or post office, then it will not be recovered. The money will be withdrawn only if the pensioner knowingly gives wrong information or commits fraud.
This rule is based on the Office Memorandum (OM) of the Department of Pension and Pensioners’ Welfare i.e. DoP&PW dated July 25, 2024.
What does the new clarification say?
DoP&PW issued the letter on 30 October 2025. It was clearly stated that the access amount in pension payment will be recovered only if it is due to misrepresentation or fraud of the pensioner.
The pensioner will not be responsible for any calculation error or technical glitch of the bank. Central Pension Accounting Office (CPAO) directed all banks to review old recovery cases. If the pensioner is not at fault then stop the recovery.
Why was this needed?
Earlier many pensioners were getting notices that excess payment would be recovered. In some cases, lakhs of rupees were being demanded for a mistake 10-15 years old. The Supreme Court’s 2013 judgment had said that recovery should not be made from lower grade employees.
The 2016 OM of DoP&PW also said the same. But the banks ignored it. Now the new clarification will be applicable to everyone.
What did the experts say?
Retired IAS officer and pension expert RK Sinha said that this is a big relief for pensioners. Most of the errors lie with the bank or the PPO issuing office. Pensioners should not be punished.
CPAO’s CGM has asked banks to clear all pending cases within 3 months. If recovery has been done and it is not the pensioner’s fault then refund.
In which case there will be recovery
- The pensioner gave wrong date of birth, service details or family details.
- Deliberate manipulation in commutation or gratuity calculation.
- Taking pension from duplicate PPO at two places. In such a case, there will be recovery, but no interest will be charged.
what will happen next
CPAO has asked for a report from the banks as to how many pensioners were getting recovery. All cases will be reviewed by December. Pensioners can check their PPO by visiting SPARSH portal.
If recovery notice has come then you can complain on CPAO helpline 1800-11-1960. DoP&PW will soon issue a new circular containing detailed guidelines.
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