Circulars/Notifications - Banking Conduct & Consumer Protection Department  
  BC&CPD Circular Letter No. 01 of 2021
February 01, 2021 

The President/ Chief Executive,
All Banks,

Dear Sir/Madam,


     Please refer to BC&CPD Circular Letter No. 01 dated January 18, 2016, regarding Standard Operating Procedures (SOPs) for DCS issued by Finance Division, Government of Pakistan vide letter No. 12(9)-Reg. 6/2012.pt1453 dated January 05, 2016.

2. In order to bring transparency and ease in the pension payment process, the Government of Pakistan vide letter No. 12(9)-Reg. 6/2012 dated January 06, 2021, has made the following amendments into the SOPs for DCS with immediate effect:-

  1. Pensioner shall be required to undergo biometric verification from any branch of a bank maintaining his/ her pension account, every year in March and September. If the pensioner is unable to undergo biometric verification due to incapacitation by bodily illness, infirmity, or if his/ her fingerprints do not exist due to old age or a genetic condition, he/she will provide a life certificate as per the SOPs.

  2. In case of family pension, Non-Marriage declaration as required under para 4 and 9(xiii) of SOPs shall be obtained from pensioners on or before 30th September of each year instead of March and September.

  3. Submission of above mentioned Non-Marriage declaration will be dispensed with after the widow/ daughter/ sister of the pensioner (family pension recipient) attains the age of sixty years.

  4. If a pensioner fails to submit a life certificate or fails to undergo biometric verification during March and September or a pensioner does not draw a pension for consecutive six months, the account shall become dormant.

  5. The requirement of submission of indemnity bond by a pensioner, as laid down in para 3(f) and 9(xii) of the SOPs is discontinued.

3. In continuation to the above instructions, the following clarifications have also been issued by Finance Division:

  1. The Pension shall be paid through a bank account either current or PLS maintained in the pensioner’s name.

  2. A pension account shall not be a joint account.

  3. A bank account dedicated to pension transactions only shall not be mandatory for the pension.

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

5. Please acknowledge receipt.

Yours’ truly,


(Asif Mahmood)


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