Pension arrears of KSRTC to be disbursed soon, cooperative banks to provide loan at eight percent interest

THIRUVANANTHAPURAM: Two months' pension arrears of KSRTC will be disbursed soon after a consortium of cooperative banks assured the finance department that they will provide loans at eight per cent interest. The move was accelerated after a discussion between Finance Minister KN Balagopal and Cooperation Minister VN Vasavan following a news item published by Kerala Kaumudi on August 22.

It is customary for pensions to be paid through a consortium of cooperative societies, and the amount spent is reimbursed by the government with interest. But the banks were charging eight and a half percent interest. The pension distribution was stopped when the finance department demanded that it be decreased to seven and a half percent. KSRTC has 41,000 pensioners. 60 crore per month is required for pension in KSRTC.