SBP instructs banks on pension

KARACHI: The State Bank of Pakistan (SBP) on Monday advised banks to credit and withdraw the undrawn pension for consecutive six months or over from pensioner’s account to the government account.

“The banks have been advised... (to) render the pensioner’s account dormant if life/non-marriage certificate is not received after every six months (or) if the pensioner fails to draw pension for consecutive six months,” the State Bank said, in a circular.

The SBP warned the banks that any violation found in compliance with the instructions would be dealt with under Banking Companies Ordinance, 1962. The State Bank also directed banks to ensure compliance of payments to pensioners through direct credit system.

“In case of personal appearance of pensioner, the bank manager should personally verify the pensioner’s existence,” it said.