Master Circular- Disbursement of Pension by Agency Banks
2. Payment of Pension to Central Government Pensioners through Public Sector Banks - Steps taken by Government to minimize delay in payment of Dearness Relief (DR) to Pensioners - Discontinuation of forwarding Government Orders in respect of DR etc. through Reserve Bank of India.
ii. The orders are put on web-site of Ministry of Personnel, Public Grievance and Pensions (http://www.persmin.nic.in)
iii. Copies of orders are also sent by post to Heads of all Agency Banks and published in leading newspapers by Indian Banks' Association. RBI would no longer be forwarding Government orders in respect of Dearness Relief to Agency Banks.
3. Acceptance of nomination in form 'A' and 'B'- Central Civil / Railway Pension
4. Implementation of procedure for payment of pensions and other retirement benefits to All India Service Officers retiring from Government of India while on Central Deputation.
Agency Banks are advised to follow accounting procedure for payment of pension to All India Service Officers retiring from Government of India while on Central Deputation as follows:
(ii) All India Service Pensioners will have the option to draw pension only through the authorised banks.
(iii) The Special Seal Authority (SSA) issued by the CPAO would be in blue colour to distinguish it from authorities issued for Central Civil pensioners. In addition, the authority will indicate the State Government to which the payment is debitable.
(iv) One copy of the SSA will be sent to concerned Accountant General for information and record.
(v) The concerned paying branches of the bank after following the necessary procedure for identifying the pensioner would release the payment and add the name of All India Service Pensioner to the scrolls prepared for State Government Pensioners to be routed for reimbursement to the reimbursing branches of the Reserve Bank/ State Bank as the case may be. Such scrolls are NOT being handled under Single Window System of pension reimbursement for Central Government Civil Pensioners and should not therefore be sent to CPAO.
(vi) The reimbursing branches would follow the procedure for the State Government Pensioners and send advice to Reserve Bank, CAS, Nagpur and the corresponding scrolls to the concerned Accountant General.
5. Scheme for payment of pension to Defence pensioners by public sector banks - delay in submission of pension payment scrolls and steps to avoid fake & fraudulent payments.
It has been observed that there is a lag of two to three months in submitting the pension payment scrolls to pension authorities by the pension paying banks.
Often these scrolls are bunched. In this connection, a reference is invited to paragraphs 9(6), 10 and 11 of the booklet "Scheme for Payment of Pension to Defence Pensioners" wherein the procedure for transmission of pension payment scrolls by paying branches, link branches and reimbursing branches is clearly stipulated. The entire procedure needs to be completed as per the timeframe fixed so that the payment scrolls are finally received at the Office of the PCDA (Pension), Allahabad latest by 15th of the followrding month (except for the month of March scrolls, which should invariably reach latest by 3 week of every year). The Office of the PCDA (Pension) has also noticed that in some cases of payment of gratuity and commutation amount were made to imposters on fake and fraudulent PPOs by the pension paying branches without observing prescribed checks. It has also been observed that in the cases of first payment of pension, either PPO numbers were not mentioned on the scrolls or incorrect PPO numbers were mentioned making it difficult to verify the correctness of the payment. Further, these payments were being shown in the main pension payment scrolls along with the regular monthly payments of Defence Pensioners.
The Pension Paying Branches/ Link Branches / Reimbursing Branches are advised to put in place a more efficient system to ensure the following:
(i) Pension Paying Branches to submit pension payment scrolls to Link Branches within the stipulated time (by 10 of the following month). No bunching of scrolls is done.
(iii) Reimbursing banks should forward the original copy of the scrolls directly to CDA (Pension), Allahabad after reimbursing pensionthpaying bank, by debit to Government Account so as to reach PCDA (Pension) by 15 of the following month except for the March scrolls.
(iv) In the cases of first payments of pension, pension paying branches should prepare scrolls carefully indicating correct PPO number, amount of gratuity and commutation against the name of each pensioner and submit the same separately on a monthly basis in addition to the regular monthly payment cases which will continue to be prepared separately along with separate summary sheet.
(v) Pension paying branches should prepare separate summary sheets for regular monthly pension payment cases as well as first pension payment case.
(a) Once pension has been credited to a pensioner's bank account, the liability of the Government/Bank ceases. No further liability arises, even if the spouse wrongly draws the amount.
(b) As pension is payable only during the life of a pensioner, his/her death shall be intimated to the bank at the earliest and in any case within one month of the demise, so that the bank does not continue crediting monthly pension to the Joint Account with the spouse, after the death of the pensioner. If, however, any amount has been wrongly credited to the Joint Account, it shall be recoverable from the Joint Account and/or any other account held by the pensioner/spouse either individually or jointly. The legal heirs, successors, executors etc. shall also be liable to refund any amount, which has been wrongly credited to the joint account.
(c) Payment of Arrears of pension (Nomination) Rules 1983 would continue to be applicable to a Joint Account with the pensioner's spouse. This implies that if there is an 'accepted nomination' in accordance with rules 5 and 6 of these Rules, arrears mentioned in the rules shall be payable to the nominee.
15. Disbursement of Central Government Pension through Public Sector Banks - Issue of Pension Slip.
It has been decided in consultation with the Central Pension Accounting Office, Ministry of Finance, Government of India to issue pension slips to the Central Government pensioners (Civil) at commencement of pension and thereafter, wherever there is a change in quantum of pension. All the agency banks were advised to issue suitable instructions to their pension paying branches.
16. Introduction of Single Window System for reimbursement of Defence Pension Payments.
It has been decided in consultation with the Office of Principal Controller of Defence Accounts (Pension) to introduce Single Window System for reimbursement of Defence Pension with effect from April 1, 2007. Hence, the Reimbursing Banks i.e. RBI (PADs), SBI and its associate banks will cease to reimburse Defence pension payments made by the banks with effect from April 1, 2007. Pension payments transactions may be reported through Link Cell in Nagpur to Central Accounts Section, Reserve Bank of India, Nagpur for fund settlement as in the case of Central Civil Pension. The agency banks are required to send the Payment scrolls to the office of the PCDA (P), Draupadi Ghat, Allahabad.
17. Scheme for payment of pension to Arunachal Pradesh Government pensioners by public sector banks:
Government of Arunachal Pradesh has modified the scheme for payment of pension permitting credit of pension also to a Joint Account operated by pensioner with his/her spouse in whose favour an authorization for family pension exists in the pension payment order (PPO). The joint account of the pensioner with the spouse could be operated either by 'former or survivor' or 'either or survivor' basis subject to the following terms and conditions:
a) Once pension has been credited to the pensioner's bank account, the liability of the Government/bank ceases. No further liability arises, even if the spouse wrongly draws the amount without the knowledge of the pensioner.
b) As pension is payable only during the life of a pensioner, his/her death shall be intimated by the spouse to the bank at the earliest and in any case within one month of the demise, so that the bank does not continue crediting monthly pension to the joint account with the spouse, after the death of the pensioner. If, however, any amount has been wrongly credited to the joint account, it shall be recoverable from the joint account or his/her account held by the pensioner/spouse either individually or jointly. The legal heirs, successors, executors etc. shall also be liable to refund any amount, which has been wrongly credited to the Joint Account.
c) Existing pensioners desiring to get their pension credited to a Joint Account as indicated above are required to submit an application in the prescribed form to the concern bank branch, from where they are presently drawing pension. The pensioner's spouse in token of having accepted the terms would also sign this. The above facility is applicable to the existing/future pensioners.
d) Opening of Joint Account with any other person for credit of pension, except the spouse in whose favour family pension is authorised in the PPO, shall not be permissible. Family pensioners are not covered under this revised scheme.
18. Disbursement of Central Civil/Defence/Railway and Governments of West Bengal, Goa and Kerala Pension through Public Sector Banks-Issue of Pension Slips:
19. Scheme for payment of pension to Assam Government Pensioners by Public Sector Banks- Credit of pension to Joint Account operated by a pensioner with his /her spouse:
The Government of Assam has modified the scheme for payment of pension permitting credit of pension also to a Joint Saving/Current Bank Account operated by pensioner with his/her spouse in whose favour an authorization for family pension exists in the Pension Payment Order (PPO). The joint account of the pensioner with the spouse could be operated either by 'Former or Survivor' or 'Either or Survivor' basis subject to the following terms and conditions:
(b) As pension is payable only during the life of a pensioner, his/her death shall be intimated to the bank at the earliest within one month of the demise, so that the bank does not continue crediting monthly pension to the Joint Account with the spouse after the death of the pensioner. If, however, any amount has been wrongly credited to the Joint Account, it shall be recoverable from the account and/or any other account held by the pensioner/spouse individually/jointly. The legal heirs, successors, executors etc. shall also be liable to refund any amount, which has been wrongly credited to the Joint Account.
(c) The Payment of Arrears of pension (Nomination) Rules 1987 would continue to be applicable to a Joint Account with the pensioner's spouse. This implies that if there is an 'accepted nomination' in accordance with rules 5 and 6 of these Rules, arrears mentioned in the rules shall be payable to the Nominee.
25. Scheme for Payment of pension to Telecom Pensioners through Authorized Banks-Credit of pension to Joint Bank Account operated by a pensioner with his / her spouse:
It has been decided in consultation with Central Pension Accounting Office (CPAO) to permit credit of Pension also to a Joint Account operated by DOT/ Ex-DOT, DTS & DTO pensioner (absorbed in BSNL) and drawing pension through authorized banks, with his / her spouse in whose favour an authorization for family pension exists in Pension Payment Order (PPO). The Joint Account of the pensioner with the spouse could be operated either by 'Former or Survivor' OR 'Either or Survivor' basis subject to certain terms and conditions as mentioned in the Office Memorandum of Government of India, Ministry of Communications & I.T.,Department of Telecommunication, New Delhi. All agency banks have been advised to issue the instructions to their pension disbursing branches accordingly.
27. Recommendations of the Prabhakar Rao Committee on Customer Service - Pension Payments:
It has been decided to accept the recommendations of the Prabhakar Rao Committee relating to pension payments and accordingly all agency banks have been advised to issue instructions to their dealing branches to adhere to these recommendations and also instruct their internal Auditors / Inspectors to bestow due attention to the adherence to the items of work by the branches listed with respect to the checklist (enclosed therewith) and comment on the quality of customer service in their reports which may be made available to Reserve Bank's inspecting officers, as and when they visit the branches.
28. Implementation of Government's decision on the recommendations of Sixth Central Pay Commission - Revision of pension of pre-2006 pensioners / family pensioners etc.
Government of India, Ministry of Personnel , Public Grievances & Pensions, New Delhi have accorded the sanction of regulation of pension/family pension of all the pre-2006 pensioners / family pensioners w.e.f. January 2006 vide letter No.38/37/08-P & PW(A) dated September 1, 2008. These orders apply to all pensioners/family pensioners who were drawing pension / family pension on January 1, 2006, under the Central Civil Services (Pension) Rules, 1972. CCS (Extraordinary Pension) Rules & the corresponding rules applicable to Railway Pensioners & pensioners of all India services, including officers of the Indian Civil Service retired from services, on or after January 1, 1973. These orders do not apply to retired High Court and Supreme Court Judges and other Constitutional /Statutory Authorities whose pension etc. is governed by separate rules / orders.
Accordingly all agency banks have been advised to issue suitable instructions to adhere to the Government recommendations while disbursing the pension to the pensioners.
29. Scheme for payment of pension to Central Government / Civil/Defence / Railway/ Telecom/Freedom Fighters/ State Governments Pensioners by Public Sector Banks- Staggering of pension payments by PSBs.
We have been receiving the large number of complaints from pensioners regarding non payments of pension in the last four working days of each month. Instead, pension is paid by the agency banks on the last working day of the month which causes much hardship to the pensioners and they have to wait in queue for a long time.
In this connection, we had reiterated the instructions contained in our earlier circular GA.NB.No.307/45.01.001/94-95 dated June 1, 1995 and advised all agency banks to spread over disbursal of pension during the period of last four working days of the month, except for the month of March, which will continue to be credited on or after the first working day of April.
30. Issue of Pension Slips / Updation of Pension Payment Order by Pension paying branches of Agency banks.
31. Recovery/Refund of overpayment of pension to the Government Account.
32. Scheme of Payment of Pension to Railway Pensioners through Public Sector Banks-issue of Due and Drawn statement .
The Ministry of Railways (Railway Board), New Delhi has informed that banks are not advising the pensioners about the details of the payments made to them on account of the revised pension. Therefore, in order to bring more transparency in the procedure of payment of arrears Ministry of Railways have requested us to instruct all Public Sector Banks to provide a copy of the 'Due and Drawn' statement to the pensioners. All the Public Sector Banks have, therefore, been advised to issue suitable instructions to their pension paying branches for issuance of 'Due and Drawn' statement in the prescribed form to Railway pensioners, whenever there is a change / revision in their pension, so as to avoid inconvenience to the pensioners. They have been advised to report the action taken in the matter to the Ministry of Railways under advice to Reserve Bank.
33. Scheme for payment of pension to Central Civil/ Defence/ Railway/ Telecom/ Freedom Fighters/State Governments' Pensioners through Public Sector Banks- Facility for withdrawal of pension by old/ sick/ disabled/ incapacitated pensioners.
34. Pension Payment to Central/ State Govt. Pensioners by Agency Banks- Compensation for delay
Reserve Bank of India is receiving several complaints from the pensioners alleging inordinate delay in disbursing the revised pension and arrears. Position was reviewed by RBI and the agency banks have been instructed as under:
i) Pension paying banks should compensate the pensioner for the delay in crediting the pension/ arrears thereof by paying compensation at a fixed interest rate of 8 per cent for the delay after the due date and the compensation shall be credited to the pensioner's account automatically without any claim from the pensioner on the same day when the bank affords credit for revised pension/ pension arrears, in respect of all delayed pension payments made since October 1, 2008.
ii) Pension paying banks have been requested to put in place a mechanism to obtain immediately the copies of pension orders from the pension paying authorities directly and make payments without waiting for receipt of instructions from RBI so that pensioners should get the benefits announced by the Governments in the succeeding month's pension payment itself.
iii) System of attending to customer service including pension payments may be reviewed.
iv) The branch continues to be a point of referral for the pensioner lest he/she feel disenfranchised.
v) All branches having pension accounts should guide and assist the pensioners in all their dealings with the bank
vi) Suitable arrangements are made to place the arithmetic and other details about the pension calculations on the web, to be made available to the pensioners through the net or at the branches at periodic interval as may be necessary and sufficient advertisement is made about such arrangements.
vii) All claims for agency commission in respect of pension payments must be accompanied by a certificate from E.D. / CGM- in- Charge of Government business in case of SBI and its Associate Banks that there are no pension arrears to be credited/ delays in crediting regular pension/arrears thereof.
35. Introduction of Single Window System for Reimbursement of Railway Pension Payments.
36. Irregularities in the Railway pension payment by the public sector banks
Agency banks have been advised to strictly adhere to the instructions contained in the scheme for payment of pension to Railway pensioners.
37. Payment of Central / State Government pension by agency banks - Settlement of reimbursement claim for pension payments made
38. Introduction of Single Window System for Reimbursement of Telcom Pension Payments.
The Single Window System (SWS) has been introduced in case of the reimbursement of Telecom Pension payments with State Bank of India, its Associates and Nationalised Banks with effect from October 1, 2012 Telecom pension payments made by these banks will be reimbursed by RBI, Central Accounts Section, Nagpur.
39. Introduction of the 'Scheme for Payment of Pension to Postal Pensioners through Nationalised banks' in addition to Post Offices
The Department of Posts has introduced a scheme for payment of pension to Postal pensioners/ family pensioners through Nationalised Banks in addition to Post Offices with the concurrence of the Controller General of Accounts, Ministry of Finance and Comptroller & Auditor General of India vide their Office Memorandum No 26-26/2012-PA (PEA)/D.1133- 1207 dated October 19, 2012.
40. Payment of pension to the Central Government pensioners- Continuation of either or survivor pension account after death of a pensioner
All agency banks disbursing Central Government pension have been advised that in case the spouse (Family pensioner) opts for existing joint account for credit of family pension, banks should not insist on opening of a new account when the spouse is the survivor and having a joint account with the pensioner and in whose favour an authorization for payment of family pension exists in the Pension Payment Order (PPO).
RBI Forwarding letter:
Master Circular- Disbursement of Pension by Agency BanksRBI/2013-14/101
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.
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