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 (RBI) 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 Timing: Agency banks must disburse pensions to pensioners on or before the last day of the month.

Recovery of Excess/Wrong Payments: Banks must recover excess or wrong payments made to pensioners and refund the amount to the government.

Withdrawal of Pension: Old, sick, disabled, or incapacitated pensioners can withdraw their pensions through a written authorization.

Reimbursement of Pension Payments: Banks will be reimbursed for pension payments made to pensioners.

Continuation of Pension Account: After a pensioner’s death, the pension account can be continued as an “either or survivor” pension account.

Life Certificate: Pensioners must submit a life certificate to the bank, which will issue an acknowledgement.

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

Customer Service: Banks must provide good customer service to pensioners, including resolving their grievances promptly.

Checklist and Annexures: The circular includes a checklist for internal/concurrent audits and an appendix listing the circulars consolidated for the master circular.

Chat with the Master Circular:

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

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