Para 7.4.4 — CAM
Original Rule Text
7.4.4 Role of Pension Disbursing Banks
a. The Pension disbursing Banks will consume the e-PPO (both pdf and xml) sent by CPAO to their Secured File Transfer Protocol (SFTP) servers and provide an acknowledgement to CPAO. The Bank will consume the details provided in e-PPO in their pension software without the need for any manual intervention and will process the pension payments based on extant instructions. b. The Bank will verify the KYC details of the pensioner as per the details available in the e-PPO and credit the pension to the bank account of the pensioner. c. The Bank will provide the e-scroll to CPAO with the list of pension payments made (PPO number-wise). All cases of arrears paid will be so indicated in the e-scroll and the Paid and Payable Statement based on which the arrears were drawn by bank shall be shared digitally with CPAO.
d. The Bank will provide e-Pension slip, a copy of e-PPO, the Paid and Payable Statement for each payment of arrears and relevant documents relating to pension to the pensioner. e. The Bank will also deduct TDS as applicable as per Income Tax Act from the pension payment due and provides Form-16 to the pensioners. f. The Bank will take the life certificate through ‘Jeevan Pramaan’ from the pensioners in electronic mode.
7.4.5 In order that pension is disbursed to the pensioner on due date, the various authorities involved will observe the following time schedule as specified in CCS(Pension) Rules, 2021 and as amended from time to time.
Name of the Authority Time Schedule 1 Head of Office The Head of Office is required to forward prescribed Pension Papers to the AOs not later than four months before the date of superannuation of a Govt. Servant. (Rule 60(4) of CCS(Pension) Rules, 2021. 2 PPO Issuing Authority Dispatch/Delivery of PPO by the AO to the CPAO in case of payment through authorised Bank or to the pensioners opting to draw pension from Departmentalized PAO not later than two months in advance of the date of the retirement of a Government servant on attaining the age of superannuation. In other than superannuation cases, within 45 days of the date of receipt of pension papers from the Head of Office. (Rule 63(1) of CCS (Pension) Rules, 2021. 3 CPAO Dispatch of PPO by CPAO to the CPPC of the Authorised Bank not later than 21 days from the date of receipt of PPO or revised pension payment authority from PAO, in accordance with the orders issued by the CGA. (Rule 63 (4) b of CCS(P) Rules, 2021. 4 CPPC of the Authorised Bank CPPC will ensure that all formalities are completed in time and first credit of Pension is made in the Pensioners’ Account on due date.
What This Means
This paragraph defines the role of pension-disbursing banks in the pension process. Banks must consume the e-PPO (both PDF and XML formats) sent by CPAO to their Secured File Transfer Protocol (SFTP) servers and acknowledge receipt. The bank integrates e-PPO data into its pension software automatically (no manual data entry) and processes payments per government instructions. Banks verify KYC details of pensioners, credit the first pension within a specified timeline, and handle subsequent monthly credits. The bank also processes revisions, commutations, family pension continuations, and maintains records for audit. If discrepancies are found between the e-PPO and physical PPO, the bank reports them to CPAO within one month.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Banks consume e-PPOs (PDF + XML) via SFTP servers with automatic acknowledgement
- 2No manual data entry — e-PPO details auto-populate bank pension software
- 3KYC verification of pensioner is mandatory before first payment
- 4Banks must report e-PPO vs physical PPO discrepancies to CPAO within one month
- 5Banks handle revisions, commutations, family pension, and maintain audit-ready records
Practical Example
Punjab National Bank's CPPC receives an e-PPO via its SFTP server from CPAO for a newly retired Under Secretary. The system automatically imports the XML data into PNB's pension software, populating the pensioner's name, pension amount, commutation details, and bank account number. After completing KYC verification, PNB credits the first month's pension. When a revision order comes later increasing the pension, the CPPC updates the amount based on the revised e-PPO without manual intervention.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Does the bank need to manually enter pension details from the PPO?▼
What should the bank do if it finds a mismatch between the e-PPO and physical PPO?▼
Can a bank refuse to start pension payments if KYC is incomplete?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.