Circulars/Notifications - Banking Conduct & Consumer Protection Department  
  BC&CPD Circular Letter No. 03 of 2017
May 18, 2017 

The Presidents/Chief Executives,
All Banks

Dear Sirs / Madam,

Validity of Pension Payment through Direct Credit System (DCS)

In terms of BC & CPD Circular Letter No. 01 dated January 18, 2016 and Circular Letter No. 03 dated June 30, 2016, banks were advised to follow Standard Operating Procedures (SOPs) for DCS. However, Accountant General Pakistan Revenues, Accountant General Punjab and Controller Naval Accounts vide their letter Nos. PFC/Coord/Banks/2015-16/314, PEN-I/Coord/1780 and NA/PEN/DCS/01-ISLAMABAD dated April 26, 2017, May 05, 2017 and May 09, 2017 respectively have reported that some banks are not following the related instructions meticulously.

2- Accordingly, banks are advised to specifically ensure compliance with following provisions of SOPs:

a. To provide a list of those pensioners to respective account offices, who fail to submit; Life Certificate in case of self-pensioner and Non-Marriage Certificate in case of unmarried daughter/sister/widower/widow, biannually in April and October every year.

b. To render the pensioner’s account dormant if life/non-remarriage certificate is not received after 6 months or if the pensioner fails to draw pension for consecutive 6 months to enable account offices to stop pension payment.

c. To intimate the concerned account office about death of a pensioner/family pensioner as soon as the fact comes into their knowledge.

d. That the pension account shall be specifically used for the purpose of pension disbursement and shall not be a joint account.

3- All banks are advised to ensure compliance of the above instructions in letter and spirit. Any violation would be dealt with under the relevant provisions of Banking Companies Ordinance, 1962.

4- Please acknowledge receipt.

Encls: As above


Yours truly,


(Syed Mahmood Ali)
Senior Joint Director

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