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Kotak Mahindra Bank can now pay out pensions

April 06, 2022

Kotak Mahindra Bank can now pay out pensions
Kotak Mahindra Bank will be able to transfer pensions after it got a nod to run as an authorized bank for payment of pensions. Retired people can get their annuity accounts opened with the bank for the same.

The bank has received the required permissions from the national bank, the Reserve Bank of India, to commence reporting transactions made by its Central Pension Processing Center (CPPC) for the daily settlement of pension cases.
 
“The benefits paying banks will credit the annuity sum in the records of the retired people in light of the directions given by respective Pension Paying Authorities,” the RBI noted.
 
Further, RBI, in its most recent expert round, said that it has been chosen to stop the technique of forwarding government orders with respect to dearness alleviation and so forth to the pension paying agency banks. “Organization Banks may, along these lines, act on the copies of government orders supplied by the government to them through post, fax, emails or by getting to from the site and authorize their pension paying branches to make payments to the pensioners immediately,” it added.
 
In the meantime, announced that Kotak Mahindra Bank has got permission to process pensions, the Finance Ministry, in a memorandum, stated, “It is educated that the Central Pension Accounting Office (CPAO) vide its letter dated 23.02.2022 has conveyed its approval on to Kotak Mahindra Bank to begin its functions for disbursement of pensions according to the guidelines mentioned in the Scheme Booklet.”
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