Para 7.17 — CAM
Original Rule Text
7.17 AUDIT OF PENSION PAYMENTS DISBURSED BY AUTHORISED BANKS
(A) The pensionary payments, Accounts, Records and Registers maintained in the CPPC of Authorized Banks making pension payments shall be open to audit by the CAG of India or any person appointed by Government in this regard.
(B) In addition to audit by C&AG, the CPAO will also undertake the Internal Audit of the CPPCs. The Internal Audit Wing, CPAO will conduct audit of pensionary payments by Authorised Banks to check:
i. The Internal Controls Mechanisms of the Banks; ii. The accuracy and correctness of pension disbursements by the Banks and its reporting and accounting; iii. Existence of the grievance redressal mechanism for pensioners and its functioning; iv. Whether various instructions issued by the Government from time to time are being followed or not;
Note: - Please also refer scheme booklet PARA No. 28 (Post payments checks)
7.18 PROCEDURE FOR PAYMENT OF ARREARS OF PENSION
a. Payment of Pension Arrear due to delayed finalization of Pension cases: It must be ensured that arrears of pension due to the pensioners on account of delayed finalization or for any other reason may be correctly worked out. They must be paid to the pensioners in accordance with the provisions of various rules and orders applicable, by the PAOs. Only the future monthly pensions payable will be authorized to the Banks by transmitting the PPOs to CPAO. The details of the arrear of Pension paid by the PAO and Month of commencement may invariably be mentioned in the PPO while forwarding the PPO to CPAO by the PAO for arranging payment of pension.
b. Payment of Arrear of Pension due to death of Pensioner before forwarding of PPO to CPAO: There may be an occasion when the pensioner opting to draw pension through a bank dies before the PPO is sent to CPAO. In such cases, Pay and Accounts Office will make the payment of arrears of pension to the heirs of deceased pensioner and PPO will be sent to CPAO for authorizing family pension only. However, the details of the arrear of pension may be mentioned in the PPO while forwarding it to the CPAO.
c. Payment of arrear due to non-submission of the life certificate relate to period less than three years: If the arrears relate to a period less than three years and if they have not been credited due to late submission of prescribed certificate
(s) by the pensioner or for routine matters which do not require detailed examination with reference to the files of PAOs, they may be paid by the CPPC of authorized Banks after obtaining specific orders of the Manager/Officer in charge of the bank who would release the payment subject to verification of the bonafide of the claim of the pensioner. It must be ensured that no double payment/over payment is made by the paying branch. Such payments will also be mentioned prominently in the payment scrolls, quoting particulars of the latest relevant half yearly returns through which non-drawl had been reported. Authority CGA's UO No. 1(7) (1)2000/TA/377 dated 19-8-2002.
What This Means
This paragraph governs two types of audit over pension payments made by authorized banks. First, the CAG of India (or any Government-appointed person) has full audit access to all pension payment records, accounts, and registers at the Central Pension Processing Centres (CPPCs) of banks. Second, CPAO conducts its own Internal Audit of CPPCs to check internal controls, accuracy of disbursements, grievance redressal mechanisms, and compliance with government instructions. The paragraph also details the procedure for paying pension arrears in various situations — delayed finalization, death of pensioner before PPO reaches CPAO, arrears due to late life certificate submission (under 3 years vs. 3+ years), and the handling of pension when a pensioner dies (including cases with and without valid nominations, death before first payment, and unpaid commuted values).
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1CAG has statutory audit access to all pension records at bank CPPCs
- 2CPAO conducts Internal Audit of CPPCs covering controls, accuracy, grievance redressal, and compliance
- 3Pension arrears from delayed finalization are paid by PAOs, not banks; only future monthly pension goes to CPAO
- 4Late life certificate arrears under 3 years can be paid by the bank CPPC with manager approval; 3+ years requires PPO return to CPAO
- 5On pensioner death: arrears go to nominee if nomination exists; otherwise per DoPPW OM dated 10.07.2013
Practical Example
A pensioner fails to submit the annual life certificate for 2 years, so the bank stops crediting pension. When she finally submits it, the CPPC Manager verifies the claim and releases the 2-year arrears, noting the details prominently in the payment scrolls with reference to the half-yearly return that reported the non-drawl. If the gap had been 3 years or more, the CPPC would have returned the PPO to CPAO, and payment would resume only after the competent authority re-sanctions it.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can the bank pay pension arrears on its own if a pensioner has not drawn pension for 4 years?▼
What happens to a deceased pensioner's unpaid pension if no nomination was made?▼
Does CPAO's Internal Audit replace the CAG audit of pension payments?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.