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‘Bank should not cut more than 50% from retired employee’s pension, HC pronounced decision – India tv hindi

by Amit Tripathi
March 28, 2025
'Bank should not cut more than 50% from retired employee's pension, HC pronounced decision - India tv hindi

Image Source: File Photo
Symbolic photo

Bengaluru: The Karnataka High Court has directed Canara Bank not to cut more than 50 percent of his pension for recovery of outstanding loan from a retired bank employee. The court said that pension works as financial security for retired people and should not be spent in repaying the loan completely except for fraud, forgery or misconduct cases.

Justice SG Pandit, while giving the verdict, said that banks have a legal right to recover the dues, but they should follow the rules that protect the livelihood of pensioners. He said that the financial stability of the pensioner is necessary and forcing them to give up their entire pension to repay the loan would be a violation of Article 21 of the Indian Constitution.

What is the whole matter?

The case was brought before the court by 70 -year -old Murugan O, who is a retired employee of Canara Bank and currently lives in Thrissur, Kerala. Murugan retired on 30 November 2014 and is continuously paying his loan EMI from a part of his pension. However, from July 2024, Canara Bank started cutting his entire pension to pay the arrears, due to which he had to demand legal intervention. He also requested the court to prevent the bank from imposing punitive interest on the educational loan, for which he was a co-star with his daughter.

Canara Bank argued that Murugan owes Rs 8 lakh to Rs 8 lakh. The bank said that it has the right to recover the outstanding amount. However, the court ruled that the bank can deduct only 50 percent of their pension for loan recovery. (With language inputs)

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Da Hike: Announcement of increase in dearness allowance of government employees, good news for pensioners also

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