What changed
RBI issued a master circular consolidating all prior instructions on pension disbursement by agency banks. Key updates include hosting DR orders on State Government websites and discontinuing RBI's forwarding of Central Government DR orders, with banks now receiving them directly via email/fax.
What it means for you
Agency banks must now rely on direct digital communication from governments for DR orders, reducing delays. Banks must accept nomination forms 'A' and 'B' for pension arrears to heirs, improving service to senior citizens. This shifts operational burden to banks for timely pension updates.
What you must do
- Ensure your bank's systems can receive and act on DR orders directly from State Government websites and Central Government emails/faxes.
- Train branch staff to accept nomination forms 'A' and 'B' for pension arrears from pensioners' heirs.
- Monitor State Government secured websites for DR circulars and update pension payments promptly.
- Coordinate with your Head Office to implement the discontinued RBI forwarding process for Central DR orders.
Who it affects
All agency banks handling government pension disbursement, Branch staff processing pension payments, Central and State Government pensioners, Heirs of pensioners claiming arrears
How should we receive Dearness Relief orders for Central Government pensioners now?
RBI no longer forwards these orders. Banks must receive them directly via email and fax from the Ministry of Personnel, Public Grievances and Pensions, and also check the Ministry's website (persmin.nic.in).
What forms are needed for pension arrears to heirs?
Pensioners' heirs must submit nomination in form 'A' or 'B' as specified under Central Civil Pension rules. All bank branches must accept these forms for payment of arrears.
How can we expedite DR payments to State Government pensioners?
Act on DR orders hosted on State Governments' secured websites. RBI also hosts these orders on its website if provided electronically by State Governments.