In a significant move, the finance ministry has issued a directive stating that banks must ensure timely disbursement of pensions and family pensions. As per the directive, all banks have to credit pensions to the accounts of beneficiaries by the last working day of each month, with specific provisions for March payments.
According to an Office Memorandum issued by the ministry last month, there are ongoing concerns about delays that have been causing unnecessary stress for pensioners.
According to the guidelines, banks must ensure that these payments are credited to the accounts of pensioners and family pensioners by the last working day of each month. However, for March, payments should be made on the first working day of April.
As per the ‘Scheme for Payment of Pensions to Central Government Civil Pensioners by Authorized Banks’, authorised banks’ Centralized Pension Processing Centers (CPPCs) must “credit the monthly pension/family pension in the account of pensioner/family pensioner by the last working day of the month to which they relate except for the month of March for which it should be credited on the first working day of the succeeding month i.e. April”, the memorandum said.
Pensioners raise concerns over pension delays
Pensioners have frequently raised concerns about delays in receiving their monthly payments, which can lead to financial difficulties and stress.
The ministry has taken these complaints seriously and emphasizes that any delay in disbursing pensions will not be tolerated. Banks are instructed to adhere strictly to the timelines outlined in the guidelines.
“The delay in credit of pension/family pension has been viewed very seriously. The CPPCs are hereby instructed to ensure that the monthly pension/family pension is credited in the pensioner’s/family pensioner’s account every month as per prescribed timelines. Any delay, in credit of pension/family pension beyond prescribed timelines, will be viewed very seriously and necessary action, as deemed fit, will be taken,” it added.
Govt asks CPPCs to submit report on pension credit on last working day each month
To ensure compliance, banks’ Centralized Pension Processing Centers (CPPCs) must submit an electronic report confirming the credit of pensions by the morning of the last working day each month. This report will help monitor the timely disbursement of funds.
The memorandum aims to provide a smoother experience for pensioners, ensuring they receive their entitlements without unnecessary delays. The government is committed to addressing these issues and improving the overall pension disbursement process.