Now, Kotak Mahindra Bank will be able to transfer pensions after it got a nod to run as an authorised bank for payment of pensions. Retired people can get their pension accounts opened with the bank for the same.
The bank has received the required permissions from the central bank, the Reserve Bank of India, to commence reporting transactions made by its Central Pension Processing Centre (CPPC) for the daily settlement of pension cases.
“The pension paying banks will credit the pension amount in the accounts of the pensioners based on the instructions given by respective Pension Paying Authorities,” the RBI noted.
Further, RBI, in its latest master circular, said that it has been decided to discontinue the procedure of forwarding government orders in respect of dearness relief etc. to pension paying agency banks. “Agency Banks may, therefore, act on the copies of government orders supplied by government to them through post, fax, emails or by accessing from the website and authorize their pension paying branches to make payments to the pensioners immediately,” it added.
Meanwhile, announcing that Kotak Mahindra Bank has got the permission to process pensions, the Finance Ministry, in a memorandum, stated, “It is informed that the Central Pension Accounting Office (CPAO) vide its letter dated 23.02.2022 has conveyed its approval to Kotak Mahindra Bank to start its functions for disbursement of pensions as per the guidelines mentioned in the Scheme Booklet.”
What is CPAO?
It works as a link between the pension sanctioning body (the office where a government employee retired or died), the pension payment authority (Pay and Accounts Office) and the pension disbursing bank.
Meanwhile, the bank had reported a jump in its consolidated net profit by 31 per cent to Rs 3,403 crore during the third quarter of the last financial year from Rs 2,602 crore recorded in the corresponding quarter of the previous year.
