Furnishing Indemnity Bond to the Banks in case of New pensioners

POSTED BY subhaschandrac ON October 20, 2013 10:00 pm COMMENTS (2)


Whenever new pensioners opted to receive their pension from Public sector Banks (under P S B Scheme) pensioners are invariably asked by Bank  to produce the Indemnity Bond on a stamp paper of Rs 100/-indemnifying the Bank against  over payment/less payment.

Such provision also  seems to have been mentioned under SBI FAQ

On the face of it is it not patently strange and a bit illegal in the sense when bank itself is paying authority and if any loss occurs due to their inefficiency and results into excess payment how can bank is justified in seeking indemnification from the pensioner who hardly have any role in the process of payment.It is bank who has to indemnify the pensioner against less payment to pensioner  if any and recover excess payment from those who  make such excess payment, because it is bank staff which is committing the professional irregularity and for that it is bank staff who has to indemnify the Bank  against loss and not pensioner

Please throw some light on this aspect  this regard because  innumerable numer of pensioners are subjected to this hardship  every year without justification

2 replies on this article “Furnishing Indemnity Bond to the Banks in case of New pensioners”

  1. subhaschandrac says:

    yes sure,
    that is the only way out to bring the bank around.

  2. ashalanshu says:

    Dear Subhash, how about filing this complaint with banking Ombudsman.



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