Master Circular – Disbursement of Government Pension by Agency Banks (Updated as on May 17, 2021)

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 follow government orders on dearness relief (DR) and other instructions available on official websites.

Pension Disbursement: Agency banks must disburse pensions to pensioners on the last day of the month, ensuring timely payment.

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

Withdrawal of Pension: Old, sick, disabled, or incapacitated pensioners can withdraw their pension through a authorized person or through a power of attorney.

Reimbursement of Pension Payments: Agency banks must reimburse pension payments to the government on a timely basis.

Continuation of Pension Account: In the event of a pensioner’s death, the either-or-survivor pension account must be continued.

Life Certificate: Agency banks must issue an acknowledgement for life certificates submitted by pensioners.

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

Customer Service: Agency banks must provide excellent customer service to pensioners, ensuring their grievances are addressed promptly.

Checklist and Annexures: A checklist for internal/concurrent audit and annexures containing a list of consolidated circulars are provided for reference.

Chat with the Master Circular:

Download: Master Circular – Disbursement of Government Pension by Agency Banks (Updated as on May 17, 2021)

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