Kotak Mahindra Bank has received approval as an authorized bank for payment of pensions. This means that now retired individuals can open their pension accounts with Kotak Mahindra Bank. The approval was obtained based on Kotak Mahindra Bank’s approval to act as an Authorized Bank for the payment of pensions.
According to a Ministry of Finance office memorandum, “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.”
According to the RBI, “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.”
As per the latest RBI master circular, “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, e-mails or by accessing from the website and authorize their pension paying branches to make payments to the pensioners immediately.”