KSRTC pension stuck in interest trouble, govt intervention only likely solution

THIRUVANANTHAPURAM: Though the KSRTC has signed a memorandum of understanding entrusting a consortium of cooperative banks for the distribution of pension, government intervention will be needed again to facilitate the distribution of pension. KSRTC, Department of Finance and Department of Cooperation have participated in the MoU.

According to this, the consortium formed by Kerala Bank has to give funds at 8.8% interest. The MoU was signed to increase the rate from 8% to 8.8% earlier. However, the Department of Cooperation is now of the position that this is not enough.

The interest rate on cooperative societies' deposits was raised last day. Interest rate hiked up to 9.5% for senior citizen deposits. The department is of the view that the loan can be given only by increasing this interest by half a percent. A letter has been sent to the transport department stating that it can give money at only 10% interest rate for KSRTC pension distribution.

Moreover, the cooperation department has also informed that it is owed Rs 270 cr for earlier pensions.

Pensions are due from December. If the dispute continues, the pension disbursement will not happen immediately and 40,000 pensioners will suffer.