What changed
RBI issued an updated master circular (RBI/2007-2008/64) replacing the July 2006 version, incorporating all instructions up to June 30, 2007. The circular formalized that agency banks must act on DR orders received directly from government (via email/fax) and from state government websites, instead of waiting for RBI to forward them.
What it means for you
Agency banks must now proactively obtain DR orders from government sources (email, fax, websites) to ensure timely pension credit to senior citizens. Banks can no longer rely on RBI as an intermediary for DR circulars, shifting the onus to their own internal mechanisms for faster disbursement.
What you must do
- Set up a mechanism to immediately receive and act on DR orders from government emails, faxes, and state government websites.
- Ensure pension-paying branches have access to DR orders hosted on Ministry of Personnel's website (persmin.nic.in) and state government secured sites.
- Discontinue reliance on RBI for forwarding DR orders; instead, use direct government communications.
- Acknowledge receipt of this master circular to RBI as instructed.
Who it affects
All agency banks handling government pension disbursement, Pension-paying branches of public sector banks
Why did RBI stop forwarding DR orders to agency banks?
To reduce delays in pensioners receiving Dearness Relief. The government now sends orders directly to bank heads via email/fax and posts them on official websites, enabling faster action.
Where can we find the latest DR orders for central government pensioners?
DR orders are available on the Ministry of Personnel's website (persmin.nic.in) and are also emailed/faxed to heads of all agency banks. For state pensioners, orders are hosted on state government secured websites.
Does this circular change any other pension disbursement rules?
No, it consolidates existing instructions. The main change is the process for obtaining DR orders—banks must now source them directly from government, not via RBI.