RBI advises states against reverting to old pension scheme, says big risk

Himachal Pradesh, Chhattisgarh, Rajasthan and Punjab have decided to roll out the old pension scheme

Amid a move by some state governments to restore the old pension scheme (OPS), the Reserve Bank of India has put forth its reservation against it, saying doing so would entail a major risk for the sub-national fiscal horizon.

Earlier this month, Himachal Pradesh became the fourth state to revert to the OPS for state government employees. Chhattisgarh and Rajasthan, too, have rolled out the old pension scheme. Both these states are ruled by the Congress party. Besides them, the AAP-ruled Punjab has preferred the OPS.

According to The Hindu Businessline, the RBI said in its report on