Disbursement of Pension by Agency Banks – Master Circular
Disbursement of Pension by Agency Banks – Master Circular issued by Reserve Bank of India
– Payment of Pension to Government Pensioners under the various schemes through agency banks Introduction
In order to obviate the time lag between the issue of Dearness Relief etc. orders and actual payment to the beneficiaries and to render expeditious service to the senior citizens, Ministry of Personnel, Public Grievances and Pensions, Department of Pension and Pensioners Welfare, Government of India have taken following steps:
With a view to avoid inconvenience to the pensioners, Central Pension Accounting Office (CPAO) and Ministry of Railways (Railway Board), have decided to adopt the nomination forms (‘A’ & ‘B’). Agency banks were advised to issue necessary instructions to all pension paying branches to accept Nomination Forms ‘A’ or ‘B’ as the case may be, submitted by Central Civil/Railway pensioners for the payment of arrears of pension to the heir(s).
(Ref. DGBA.GAD. H-10975/45.05.031/ 2006-07 dated January 9, 2007 Ref. DGBA.GAD. H-17663/45.05.031/ 2006-07 dated June 12, 2007 Ref.DGBA.GAD.No. 3856/45.05.031/2007-08 dated October 8, 2007 Ref.DGBA.GAD.No.H 12704/45.05.005/2007-08 dated June 11, 2008 Ref.DGBA.GAD.No.924/45.05.012/2008-09 dated July 23, 2008 Ref. DGBA. GAD.No.H 2090/ 45.05.015/ 2009-10 dated September 1, 2009)
It has been decided by Central Pension Accounting Office (CPAO)/Ministry of Defence/Railway and Governments of West Bengal, Goa and Kerala to issue pension slips to their pensioners including family pensioners. Accordingly, pension slips as per the prescribed format are to be issued to these pensioners/family pensioners at the commencement of pension and thereafter, whenever there is a change in quantum of pension. All the agency banks were advised to issue suitable instructions to their pension paying branches.
Although suitable instructions were issued to the agency banks, for issue of Pension Slips and for updation of PPO, we have been receiving complaints from Pensioners’ Associations regarding non-issue of Pension Slips by pension paying branches. They have also complained that the pension paying branches do not update both halves of Pension Payment Order (PPO), whenever there is change in basic rates of pension advised by the concerned Government Departments. We have, therefore, advised all Regional Offices to ensure that the Inspecting Officers from PADs invariably look into the aspect of Pension Slips and updation of PPO and furnish specific comments thereon while conducting the inspection of agency banks.
Government of India have advised us that the overpayments of pension made by the banks are not credited back to Government account by the banks in lump sum but are remitted in installments as and when recovered from the pensioner. As this causes loss to the Government, all agency banks have been advised that whenever any excess / overpayment is detected the entire amount thereof should be credited to the Government account in lump sum immediately. We have reiterated instructions issued vide our circular dated April 18, 1991 and June 1, 2009 for recovery of excess payments and lump sum refund of excess/ overpayments respectively.
It is observed that the guidelines issued by RBI are not being meticulously adhered to by the banks, may be due to ignorance of the bank staff and that of the pensioners. In order to take care of the problems/ difficulties faced by the sick and disabled pensioners in withdrawal of pension / family pension from the banks, we have reiterated the instructions issued earlier to all the agency banks and advised them to categorise the cases of sick and incapacitated pensioners as under:
1. Pensioner who is too ill to sign a cheque / unable to be physically present in the bank
2. Pensioner who is not only unable to be physically present in the bank but also not even able to put his/her thumb impression on the cheque/ withdrawal form due to certain physical defect / incapacity.
With a view to enabling such old/sick/incapacitated pensioners to operate their accounts, banks have been advised to follow the procedure as under:
a) Wherever thumb or toe impression of the old/sick pensioner is obtained, it should be identified by two independent witnesses known to the bank, one of whom should be a responsible bank official.
b) Where the pensioner cannot even put his/her thumb/ toe impression and also would not be able to be physically present in the bank, a mark can be obtained on the cheque/withdrawal form, which should be identified by two independent witnesses, one of whom should be a responsible bank official.
Accordingly, the agency banks are requested to instruct their branches to display the instructions issued in this regard on their notice board so that sick and disabled pensioners could make full use of these facilities. The banks are also advised to sensitise the staff members in the matter and to refer to the FAQs on pension disbursement hosted on our website www.rbi.org.in in case of any doubt.
(Ref.DGBA.GAD.No.H-6493/45.03.001/2010-11 dated March 21, 2011, DGBA.GAD.No. H-74/45.03.001/2011-12 dated July 5, 2011, DGBA.GAD.No. H-8024 & 8026/ 45.03.001/ 2011-12 dated June 6, 2012 and DGBA.GAD.No. H-562 & 563/ 45.03.001/ 2012-13 dated July 27, 2012)
The Single Window System (SWS) has been introduced in case of the reimbursement of Railway Pension payments with Bank of Baroda and Allahabad Bank effect from April 1, 2011, with United Bank of India with effect from July 1, 2011, with State Bank of India and Dena Bank with effect from July 1, 2012 and with Bank of Maharashtra and Union Bank of India with effect from August 1, 2012. Railway pension payments made by these banks will be reimbursed by RBI, Central Accounts Section, Nagpur.
It has been decided to allow the Link branches of the agency banks to submit the reimbursement claims to Reserve Bank of India, Public Accounts Departments/ Central Accounts Section, Nagpur for Central /State Government pension payments in 4 lots instead of 3 lots in a month.
RBI Forwarding letter:
Master Circular- Disbursement of Pension by Agency Banks
All Agency Banks
Master Circular- Disbursement of Pension by Agency Banks
Please refer to our master circular RBI/2012-13/103 dated July 02, 2012 on the above subject. We have now updated the master circular incorporating important instructions issued by us till end of June 2013. A copy of the same is enclosed for your information. This circular may also be downloaded from our website www.mastercirculars.rbi.org.in.
2. Please acknowledge receipt.
Encl: As above