Bandhan Bank Authorized by RBI for Civil Pension Disbursement: Bandhan Bank has been authorised by the Reserve Bank of India (RBI) to function as an authorised pension disbursement bank, which is a significant development. This authorisation is in collaboration with the Central Pension Accounting Office (CPAO), which is part of the Ministry of Finance. The bank intends to work closely with the CPAO to commence and streamline the disbursement of civil pensions.
Daily Current Affairs Quiz: August 2023
| What is pension disbursement? Pension can be drawn either through the Branch of a Public Sector Bank or through Treasury. The Accounts Officer after going through all the procedures will issue the Pension Payment Order to the Central Pension Accounting Office who will issue the Special Seal Authority to the concerned Bank/Treasury. |
Empowering Financial Services for Civil Pensioners
Bandhan Bank’s unexpected role as an authorised pension payout bank has far-reaching consequences for a wide variety of beneficiaries. This authorization enables the bank to effectively disburse pensions to a variety of recipients:
- Central Government Employees: The bank is in charge of distributing pensions to retired employees of Civil Ministries and Departments, excluding Railways, Posts, and Defence.
- Territorial Scope: Bandhan Bank’s responsibilities include pension payment for the National Capital Territory of Delhi and Union Territory Administrations without legislatures.
- Judicial Retirees: Retired Judges from the High Courts and the Supreme Court are also covered under this scheme, ensuring their pension payments are managed efficiently.
- All India Service Officers: The bank’s permission includes the payment of pensions to All India Service Officers in order to meet their financial demands after retirement.
- Former Parliament Members: This scheme extends its coverage to the payment of pensions for former Members of Parliament, ensuring their financial well-being after their tenure.
- Distinguished Leaders: Additionally, pensions and various amenities for former Presidents and Vice Presidents of India fall within the purview of this scheme.
Bank’s Commitment to Streamlined Service
Debraj Saha, the Head of Government Business at Bandhan Bank, expressed the institution’s commitment to ensuring efficient pension disbursement. Saha highlighted the pivotal role the bank now plays in securing retirees’ financial stability during their golden years. The bank’s improved ability to provide efficient, secure, and timely services is expected to considerably benefit retirees. Saha extended gratitude to regulatory authorities for entrusting the bank with this crucial mandate.