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 pension-related orders, which are available on government websites.

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 Pension: 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, and ensure reimbursement of pension payments.

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 established for the reimbursement of pension payments.

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

Internal Audit: Agency banks must conduct internal and concurrent audits to ensure compliance with the guidelines, using the provided checklist (Annex 1).

Consolidated Circulars: The master circular consolidates various circulars issued by the RBI, which are listed in the appendix.

Chat with the Master Circular:

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

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