ANNEXURE  M

{See para 4(iii)}

(R.B.I. INSTRUCTIONS)

An extract of Instructions issued by RBI to the Managing Directors of State Bank of India and its Associate Banks and General managers of Nationalised Banks in connection with the extension of facility of allowing cheque books and acceptance of standing instructions for transfer of funds from the accounts of Central Civil pensioners drawing pension under the Scheme for payment of Pensions through Public Sector Banks is reproduced below :-

(i)                  ACCEPTANCE OF STANDING INSTRUCTIONS FROM THE PENSIONERS

The matter has been examined by us in consultation with the Government of India, Ministry of Finance, who have advised that acceptance of standing instructions for transfer of funds etc. from the pensioner’s accounts would not be inconsistent with the scheme and that they see no objection to public sector banks dealing with such requests from pensioners at their discretion.  In exercising such discretion banks may bear in mind the fact that in view of the bonds of indemnity executed by them under the scheme, they will have to compensate the Government in respect of any overpayment or wrong payment.

(ii)               EXTENDING CHEQUE BOOK FACILITY TO PENSIONERS

(a)   Once the amount of pension and / or other pensionery benefit is credited to a pensioner’s individual savings/current account, all the operations in the account will be governed by general banking rules and practices,   Therefore, withdrawals from the account can be permitted by means of cheque / withdrawal slip as in the case of other account holders.  Request for issue of cheque book from the pensioners may therefore be considered by banks on merit of each case and subject to the rules and regulations framed by individual bank in this regard.  We feel that withdrawal by means of cheque, if permitted, will be of immense help to old pensioners.

(b)     It is also not necessary to make it compulsory for a pensioner to come personally to bank’s office to withdraw the amount of his pension every month, when other account holders have the option to withdraw money from their accounts by means of withdrawal slips/ cheques through bearer.

*(Authority : RBI (Central Office) Ref. GA, NB. No.333/GA  64 (ii-CVL-Misc(86-87) dated 5^th August, 1986)