What changed
RBI revised and updated the Master Circular on disbursement of government pension by agency banks, replacing the April 01, 2024 version. The new circular consolidates all important instructions issued by RBI up to March 31, 2025, including procedures for acting on government orders and handling excess payments.
What it means for you
Agency banks must now directly implement government orders on dearness relief and other pension updates without waiting for RBI circulars, using government websites or other official channels. Banks are also required to immediately credit any excess pension payments due to bank errors to the government account, independent of recovery from pensioners.
What you must do
- Access and implement government orders on pension and dearness relief directly from official government websites or communications without waiting for RBI instructions.
- Ensure prompt crediting of pension amounts based on instructions from Pension Paying Authorities.
- Immediately credit any excess pension payment due to bank error to the government account in lump sum, and coordinate with Pension Sanctioning Authorities for recovery from pensioners.
- For excess payments due to government errors, take up the matter with the concerned government department in a time-bound manner and maintain records of acknowledgements.
Who it affects
All agency banks handling government pension disbursement, Pension paying branches of agency banks, Government pensioners (Central and State)
Do we need to wait for RBI instructions before implementing government pension orders?
No, agency banks must act immediately on government orders received through post, fax, email, or from government websites, without waiting for further RBI instructions.
What should we do if we detect an excess pension payment due to a bank error?
Credit the entire excess amount to the government account in lump sum immediately, independent of recovery from the pensioner. Seek guidance from the Pension Sanctioning Authority for the recovery process.
How should we handle excess pension payments caused by government errors?
Take up the matter with the concerned government department with full particulars for quick resolution. This must be time-bound, and the government authority's acknowledgement should be kept on record. Do not refer such cases to RBI.