Finance Ministry Tells Banks to Pay Pensions on Time

In an important move to address the concerns of central government employee pensioners, the finance ministry has instructed banks to ensure that pensions and family pensions are credited by the end of each month.

According to an office memorandum, the ministry highlighted the provisions of the “Scheme for Payment of Pensions to Central Government Civil Pensioners by Authorized Banks.” This scheme requires banks’ Centralized Pension Processing Centers (CPPCs) to deposit monthly pensions into the accounts of pensioners and family pensioners by the last working day of each month. However, for March, pensions should be credited on the first working day of April.

The ministry has taken delays in pension payments seriously and warned that any issues may lead to necessary actions. It stated, “The delay in credit of pension/family pension has been viewed very seriously.” CPPCs are instructed to follow these timelines closely, and any delays will not be tolerated.

To ensure compliance, all CPPCs must submit an electronic report confirming the timely crediting of pensions by the forenoon of the last working day of each month.