What changed
RBI issued an updated master circular (DGBA.GAD.No.H-1/31.05.001/2011-12) replacing the July 2010 version, incorporating all instructions issued up to June 30, 2011. Key updates include hosting DR orders on state government websites (as per 2003/2004 instructions) and reiterating that RBI no longer forwards central government DR orders to agency banks (as per 2003 instruction).
What it means for you
Agency banks must now rely on direct communications from government ministries and their own head offices for DR orders, reducing delays. Banks must also accept pensioner nominations in Form A or B as per central civil pension rules, ensuring smoother claims processing for heirs.
What you must do
- Update internal pension disbursement procedures to align with the consolidated master circular.
- Ensure branches accept pensioner nominations in Form A or B as specified.
- For state government DR orders, monitor state government websites; for central government DR orders, check the Ministry of Personnel's website and receive orders via email/fax from the Ministry.
- Acknowledge receipt of the circular to RBI as instructed.
Who it affects
All agency banks handling government pension disbursement, Pension-paying bank branches, Central and state government pensioners
What is the main purpose of this master circular?
It consolidates all prior RBI instructions on pension disbursement by agency banks into one document as of July 1, 2011, to ensure uniformity and ease of reference.
How should banks now receive DR orders for central government pensioners?
Banks should receive DR orders directly from the Ministry of Personnel via email/fax and check the ministry's website, as RBI no longer forwards these orders.