Master Circular – Disbursement of Government Pension by Agency Banks

RBI Master Circular Link

Disbursement of Government Pension by Agency Banks

The Reserve Bank of India has issued a master circular outlining the guidelines for the disbursement of government pensions by agency banks.

General Instructions: Agency banks are required to implement government instructions promptly, including those related to dearness relief (DR) and other allowances.

Pension Disbursement: Agency banks must disburse pensions to pensioners on a timely basis, ensuring that payments are made before the due date.

Refund of Excess Payment: In cases of excess pension payment, agency banks must refund the excess amount to the government.

Special Provisions: Agency banks must facilitate the withdrawal of pension by old, sick, disabled, or incapacitated pensioners.

Reimbursement: Agency banks must reimburse pension payments to the government.

Continuation of Pension Account: After the death of a pensioner, agency banks must continue to operate the either-or-survivor pension account.

Life Certificate: Agency banks must issue an acknowledgement upon receipt of a life certificate from a pensioner.

Single Window System: A single window system must be in place for the reimbursement of pension payments.

Customer Service: Agency banks must provide excellent customer service to pensioners.

Checklist and Annexures: A checklist for internal/concurrent audit and annexures are provided to ensure compliance with the guidelines.

Chat with the Master Circular:

Download: Master Circular – Disbursement of Government Pension by Agency Banks

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