What changed
RBI issued an updated master circular replacing the July 2007 version, incorporating all instructions up to June 30, 2008. The circular confirms that agency banks must now obtain Dearness Relief orders directly from government sources (email, fax, websites) instead of through RBI. State governments can send DR orders to RBI in electronic and hard copy for hosting on RBI's website.
What it means for you
Agency banks must proactively access DR orders from government websites and act on them without waiting for RBI forwarding. This reduces delays in pension payments, especially for senior citizens. Banks need to ensure their branches have mechanisms to quickly receive and implement DR updates from government sources.
What you must do
- Ensure your bank's pension-paying branches have access to government websites (e.g., persmin.nic.in for central, state government sites for state pensioners) to obtain DR orders promptly.
- Set up internal processes to receive DR orders via email/fax from government departments and disseminate them to branches without delay.
- Verify that your bank's head office and regional offices are registered to receive DR orders directly from relevant government ministries/departments.
- 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, Head offices and regional offices of authorized banks in state headquarters
Do we still need to wait for RBI to forward DR orders to us?
No. As per the circular, RBI has discontinued forwarding DR orders to agency banks. You must obtain them directly from government sources: email/fax from ministries, government websites, or through IBA publications.
How should we handle DR orders for state government pensioners?
State governments have the option to send DR orders to RBI in electronic and hard copy for hosting on RBI's website. Banks should also check state government secured websites for these orders.
What is the effective date of this master circular?
The circular is dated July 1, 2008, and incorporates instructions up to June 30, 2008. It replaces the previous master circular of July 2, 2007.