What changed
RBI issued an updated master circular (RBI/2010-11/88) replacing the 2009 version, incorporating all instructions on pension disbursement by agency banks up to June 30, 2010. The circular reiterates that government orders on dearness relief for central government pensioners are now sent directly to agency banks via email/fax and posted on the Ministry's website, discontinuing RBI's forwarding of such orders. It also mandates that bank branches accept pensioner nominations in Forms A or B under the Central Civil Pension rules.
What it means for you
Agency banks must act on dearness relief orders directly from government sources without waiting for RBI forwarding, speeding up payments to pensioners. Banks need to ensure their branches accept and process nomination forms (A/B) from pensioners to avoid inconvenience to heirs. This circular consolidates existing instructions, so banks should update their internal procedures to align with the latest guidelines.
What you must do
- Update internal circulars and training materials to reflect the consolidated instructions in this master circular.
- Ensure all pension-paying branches accept nomination Forms A and B from pensioners as per Central Civil Pension rules.
- Verify that your bank's systems can process dearness relief payments based on government orders received directly via email/fax or from the Ministry's website.
- Acknowledge receipt of this circular to RBI as instructed.
Who it affects
Agency banks handling government pension disbursement, Branch managers and pension processing staff, Central and state government pensioners, RBI's Department of Government and Bank Accounts
Do we still need to wait for RBI to forward government orders on dearness relief?
No. As per the circular, RBI no longer forwards such orders. Banks must act on orders received directly from the Ministry of Personnel via email/fax or from the Ministry's website.
What nomination forms must our branches accept from pensioners?
Branches must accept nomination in Form A or Form B as specified under the Central Civil Pension rules, submitted by pensioners for their heirs.