RBI / 2004 / 166
DGBA.GAD(MC)No.H-1075/31.05.001/2003-04

April 16,2004

Chaitra 27,1926 (S)

The Regional Directors / General Manager-in-Charge/
Reserve Bank of India
Public Accounts Department
|Ahmedabad / Bangalore/ Bhubaneswar / Bhopal /Chennai /Chandigarh / Guwahati / Hyderabad / Jaipur / Kanpur /Kolkata / Nagpur / New Delhi / Belapur Navi Mumbai /Fort Mumbai / Patna / Thiruvananthapuram
The Chairman / Managing Director of all Agency Bank's

Dear Sir,

Master Circular

The Reserve Bank of India has been issuing various instructions relating to Payment of Dearness Allowance / Relief to Government Pensioners from time to time. In order to enable the banks to have all the currently operative instructions on the subject at one place, a Master Circular has been prepared which is enclosed.

2. Please acknowledge receipt of this Master Circular.

Yours faithfully,

(R.C. Das)
General Manager

Encl : As above

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Master Circular

Payment of Pension to Government Pensioners under the scheme for Payment of Pensions through Public Sector Banks

1. Introduction

The Reserve Bank of India acts as a banker to the Central and State Governments in terms of the provisions of Sections 20,21 and 21 A of the Reserve Bank of India Act, 1934. The Reserve Bank carries out the general banking business of the governments through its own Offices and branches of Agency banks.

The payment of pension alo involves payment of increased Dearness Allowance/Relief and other benefits as and when announced by the Government. The communication of such Government orders are required to be transmitted to all the agency banks so that the benefits accruing to the pensioners are credited to their bank accounts quickly. In this connection, DGBA has issued three circulars during the period from March 21, 2003 to February 25, 2004, the summary of which are reproduced below:

2. Hosting of Government Orders on Dearness

Relief (DR) etc. to State Government Pensioners on Web Sites of State Governments

Presently pension payments to State Governments Pensioners are being made by the branches of Public Sector Banks as per procedure laid down in the Schemes for Payment of Pensions Through Public Sector Banks formulated by Respective State Governments. A practice is being followed by some State Governments to forward Government Orders for Dearness Relief (DR) etc. to Reserve Bank of India for onward transmission to Public Sector Banks eventhough the pension Schemes do not envisage routing of such G.O. through RBI. The present practice only adds to the delay in the process of actual disbursement of pension by bank branches without giving any additional security/authenticity of the Government Orders routed through RBI.

Accordingly, in order to obviate the time lag between issue of Dearness Relief Orders and payment of Dearness Relief Orders to the beneficiary and to render expeditious service to the senior citizens, RBI proposed to discontinue the procedure of forwarding Government orders in respect of Dearness Relief/Orders etc. to Pension Paying Public Sector Banks and the banks should act on the copies of the Orders supplied by Government to the Head Offices/Regional Offices of authorized banks in the State Head Quarters.

However, it was decided to host the Circulars on the State Governments' secured website.

(Re: DGBA. GAD .No.H-416/45.01.003/2002-03 dated March 21, 2003)

1. Payment of Pension to Government Pensioners through Public Sector Banks – Steps taken by Government to minimize delay in payment of Dearness Relief (DR) to Pensioners – Discontinuation of forwarding Government Orders in respect of DR etc. through Reserve Bank of Indi

Pension payments to Central Government Pensioners are being made by branches of Agency Banks as per the procedures laid down in the Schemes for Payment of Pensions through Public Sector Banks formulated by respective Ministries/Departments viz. Civil, Railway, Defence and Telecom. a practice is being followed by Government to forward Government Orders for Dearness Relief (DR) etc.to the Reserve Bank of India for onward transmission to Public Sector Banks eventhough the pension Schemes do not envisage routing of such Government Orders through Reserve Bank.

The issue was taken up with Government of India and was also deliberated in various Standing and Apex Committee meetings. It was felt that the present practice only adds to the delay in the process of actual disbursement of pension by bank branches without giving any additional security/authenticity of the Government Orders routed through the Reserve Bank. In order to obviate the time lag between the issue of Dearness Relief etc. orders and actual payment to the beneficiaries and to render expeditious service to the senior citizens, Ministry of Personnel, Public Grievances and Pensions, Department of Pension and Pensioners Welfare, Government of India have taken following steps :

1. As soon as the sanction of Dearness Relief at revised rates is received from Ministry of Finance, Orders for payment of Dearness Relief to pensioners at revised rates are issued and the copies of such orders are immediately sent to Heads of all Agency Banks by e-mail as well as by FAX with instructions to take necessary action for expeditious payment of Dearness Relief.
2. The Orders are put on web-site of Ministry of Personnel, Public Grievance and Pensions (http://www.persmin.nic.in)
3. Copies of Orders are also sent by post to Heads of all Agency Banks and published in leading Newspapers by Indian Banks' Association.

In view of the above arrangements, it has been decided to discontinue the procedure of forwarding Government Orders in respect of Dearness Relief etc. to Pension Paying Agency Banks with immediate effect. Banks may, therefore, act on the copies of Government Orders supplied by Government to them through Post, Fax, e-mail or by accessing from the web-site and authorize their pension paying branches to make payment to the pensioners immediately.

(Ref: DGBA. GAD. No. H-506/45.01.001/2002-03 dated April 12, 2003)

1. Hosting of Pension Circulars on RBI's Website

All State Governments have been advised that the Government Orders relating to Dearness Relief (D.R.) etc. may be sent to RBI in Electronic Form and also Hard Copy to enable the Bank to host the same on RBI Website.

(Ref: DGBA. GAD. No. 770/45.01.003/2003-04 dated February 25, 2004)

In case any clarification is required, a reference may be made to the original circular

apmaster circular on pension

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Master Circular

List of Circulars consolidated by the Master Circular

Sr. No.	Circular No.	Date	Subject	Para No.
	Ref. DGBA. GAD. No H-416/45.01.003/2002-03	21.3.2003	Hosting of Government Orders for Dearness Relief (DR)etc. of State Government Pensioners on Web Sites of State Governments	2
	Ref .DGBA. GAD .No. H506/ 45.01.001/2002-03	12.4.2003	Payment of Pension to Government Pensioners through Public Sector Banks – Steps taken by Government to minimize delay in payment of Dearness Relief (DR) to Pensioners – Discontinuation of forwarding Government orders in respect of DR etc. through Reserve Bank of India.	3
	Ref.DGBA.GAD.No.770 / 45. 01.003/2003-04	25.2.2004	Hosting of Pension Circulars on RBI's Website	4