RBI Extends Timeline by 5 Years for RRBs to Amortize Additional Pension Liabilities. Banking & Finance | Dated: 26 Mar 2025 On 20 March 2025, the Reserve Bank of India (RBI) issued a directive regarding the Amortisation of Additional Pension Liability in Regional Rural Banks (RRBs). 🎯 Key Highlights: - As per the directive, RRBs are now permitted to amortise the additional pension liability over 5 years starting from March 31, 2025, with a minimum of 20% expensed annually. It applies to all RRBs with effect from the financial year 2024-25. - RRBs must now implement the pension scheme retrospectively from November 1, 1993, which will increase their pension liabilities. 💡 Other Important Facts: (i) Tier 1 Capital of RRBs will remain unaffected by unamortised pension expenses. (ii) RRBs were previously allowed to amortise their pension liability on account of the RRB (Employee) Pension Scheme 2018 for 5 years, beginning with the financial year ending March 31, 2019. 📚 Test Your Knowledge: Recently, the RBI extended the timeline for Regional Rural Banks (RRBs) to amortize additional pension liabilities by how many years? Correct Answer: 5 years 🚀 Quick Recap: About RBI Governor : Sanjay Malhotra Headquarter : Mumbai