What changed
RBI issued an updated master circular (RBI/2013-14/101) replacing the July 2012 version, incorporating all instructions issued through June 2013. The circular mandates that agency banks act on Dearness Relief orders directly from government websites and emails, bypassing RBI forwarding. It also requires banks to accept new nomination forms 'A' and 'B' for Central Civil and Railway pensioners.
What it means for you
Agency banks must now process Dearness Relief payments faster by using government-issued orders from websites or emails, reducing delays for pensioners. Banks need to update their pension disbursement procedures to accept the new nomination forms, ensuring smoother processing for Central and Railway pensioners. This streamlines operations but requires banks to stay updated with government portals.
What you must do
- Ensure pension-paying branches access Dearness Relief orders from government websites or emails promptly.
- Train staff to accept nomination forms 'A' and 'B' for Central Civil and Railway pensioners.
- Update internal systems to align with the discontinuation of RBI forwarding for DR orders.
- Monitor government portals for updated pension instructions and communicate changes to branches.
Who it affects
Agency banks handling government pension disbursements, Pension-paying branches of public sector banks, Central and state government pensioners
How should banks get Dearness Relief orders now?
Banks must use orders from government websites or emails sent directly to their head offices, as RBI no longer forwards these orders.
What are the new nomination forms for pensioners?
Agency banks must accept nomination forms 'A' and 'B' for Central Civil and Railway pensioners, as adopted by CPAO and Railway Board.