What changed
RBI updated the master circular on government pension disbursement, consolidating instructions issued up to March 31, 2022. The previous circular from April 1, 2021 was replaced. The procedure of forwarding DR orders to banks was discontinued previously; banks must now access them from government websites.
What it means for you
Agency banks must proactively monitor government websites for DR orders to avoid delays in pension payments. Banks are liable to refund excess pension immediately if the error is theirs, and must resolve government-caused overpayments directly with departments without referring to RBI. This tightens accountability and speeds up pensioner service.
What you must do
- Access government DR orders from official websites and implement payments without waiting for RBI instructions.
- Refund any excess pension due to bank error to the government account immediately, in lump sum.
- For government-caused overpayments, coordinate directly with the concerned department for time-bound resolution and keep acknowledgements on record.
- Ensure pension disbursement branches credit pension amounts based on Pension Paying Authority instructions promptly.
Who it affects
All agency banks handling government pension disbursement, Pension paying branches of agency banks, Government pensioners (especially old, sick, disabled)
What should we do if we detect an excess pension payment due to our bank's error?
Credit the entire excess amount to the government account immediately in lump sum, independent of any recovery from the pensioner. Seek guidance from the Pension Sanctioning Authority for recovery process.
How do we handle government orders on dearness relief (DR) now?
Act on copies of government orders received via post, fax, email, or by accessing from government websites. Authorize your pension paying branches to make payments immediately without waiting for RBI forwarding.
Who do we contact for issues with government-caused pension overpayments?
Take up the matter directly with the respective government department with full particulars. Do not refer to RBI. Ensure time-bound resolution and keep the department's acknowledgement on record.