Scheme for Payment of Pensions to Central Government Civil Pensioners through Authorised Banks (Sixth Edition, 2026)

Scheme for Payment of Pensions to Central Government Civil Pensioners through Authorised Banks (Sixth Edition, 2026) is a comprehensive manual issued by the Central Pension Accounting Office (CPAO) under the Ministry of Finance. It details updated rules and strict guidelines for disbursing pensions to central civil pensioners via authorized banks. Originally established in 1990 to simplify pension accounting, the scheme also uniquely covers former Presidents, Vice-Presidents, Members of Parliament, and retired Supreme Court and High Court Judges. This booklet serves as an essential, highly dependable practical guide for bank officials and CPAO staff handling pension processing matters.

“अधिकृत बैंकों के माध्यम से केंद्र सरकार के सिविल पेंशनभोगियों को पेंशन के भुगतान की योजना” (छठा संस्करण, 2026), वित्त मंत्रालय के अधीन केंद्रीय पेंशन लेखा कार्यालय (CPAO) द्वारा जारी एक व्यापक पुस्तिका है। यह अधिकृत बैंकों के माध्यम से केंद्रीय सिविल पेंशनभोगियों को पेंशन संवितरण के अद्यतन नियमों और दिशानिर्देशों का विस्तृत विवरण प्रदान करती है। पेंशन लेखांकन को सरल बनाने के उद्देश्य से मूल रूप से वर्ष 1990 में स्थापित इस योजना के अंतर्गत, पूर्व राष्ट्रपतियों, उप-राष्ट्रपतियों, पूर्व संसद सदस्यों और सर्वोच्च न्यायालय तथा उच्च न्यायालयों के सेवानिवृत्त न्यायाधीशों को भी विशिष्ट रूप से शामिल किया गया है। यह पुस्तिका पेंशन प्रसंस्करण से संबंधित मामलों का निष्पादन करने वाले बैंक अधिकारियों और CPAO कर्मचारियों के लिए एक अत्यंत आवश्यक एवं विश्वसनीय व्यावहारिक मार्गदर्शिका के रूप में कार्य करती है।

SCHEME FOR PAYMENT OF PENSIONS TO CENTRAL GOVERNMENT CIVIL PENSIONERS THROUGH AUTHORISED BANKS

(Sixth Edition, 2026)

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
O/O. CONTROLLER GENERAL OF ACCOUNTS

CENTRAL PENSION ACCOUNTING OFFICE

टी. सी. ए. कल्याणी
महालेखा नियंत्रक
T. C. A. Kalyani
Controller General of Accounts

भारत सरकार
महालेखा नियंत्रक कार्यालय
वित्त मंत्रालय, व्यय विभाग
Government of India
O/o Controller General of Accounts
Ministry of Finance, Department of Expenditure

FOREWORD
(Sixth Edition, 2026)

As a part of the initiative to enhance ease of pension disbursement to Central Civil Pensioners through authorized banks, the Central Pension Accounting Office, Department of Expenditure, Ministry of Finance has released five editions of “Scheme for Payment of Pensions to Central Government Civil Pensioners through Authorized Banks” since its inception on 1st January, 1990.

2. This edition incorporates significant changes in rules, regulations, instructions & guidelines issued by the concerned Ministries & Departments of Government of India on Central Civil Pension since its fifth edition issued in 2021. Moreover, an effort has been made to refine and update the scheme booklet, making it more comprehensive, concise and user friendly.

3. I would like to acknowledge the dedicated efforts of the team led by Ms. Deepika Jain, ICAS, Chief Controller (Pensions) comprising Shri D. K. Sibal, Consultant, AJNIFM (ICAS-Retd.), Shri Davinder Kumar, Consultant, CРАО (Sr. Tech. Director, NIC-Retd) and Shri. Ajay Chaudhary, Sr. Accounts Officer, CPAO.

4. The Scheme Booklet is intended primarily for the authorized pension disbursing banks & CPAO. It is hoped that this Scheme Booklet will serve as a practical and dependable guide to officials of all authorized pension disbursing bank dealing with pension matters as well as those of CPAO, bringing about greater efficiency, accuracy and ease in pension processing.

(T.C.A. Kalyani)

Date: 06.05.2026

PREFACE

This is the sixth edition of the Scheme for Payment of Pensions to Central Government Civil Pensioners through Authorised Banks”, published since the inception of the Central Pension Accounting Office (CPAO) on 1st January 1990. The ‘Scheme booklet’ contains comprehensive instructions and guidelines to be meticulously followed by the staff of CPAO and the authorised banks entrusted with the disbursement of pensions to Central Civil Pensioners, in respect of cases for which pension disbursement authorities have been issued by CPAO. This edition has been updated up to April 2026.

It is recommended that the Centralised Pension Processing Centres (CPPCs) of all authorised pension disbursing banks circulate this Scheme Booklet to all pension account holding branches to ensure that the staff dealing with pension matters remain fully conversant with the latest rules, regulations, instructions, guidelines, and prescribed formats.

In the event of any inconsistency between the provisions contained in this Scheme booklet and the prevailing CCS (Pension) Rules or CCS (Extraordinary Pension) Rules, the extant CCS (Pension) Rules or CCS (Extraordinary Pension) Rules shall prevail.

The ‘Scheme booklet’ is also available on the website of the Central Pension Accounting Office and may be viewed or downloaded for reference and guidance.

Suggestions for further improvement and refinement of this scheme booklet are welcome and will be greatly appreciated.

Dated: 30th April, 2026

DEEPIKA JAIN, ICAS
Chief Controller (Pensions)
Central Pension Accounting Office

Glossary

Table of Contents

Annexures

Scheme for Payment of Pensions to Central Government Civil Pensioners through Authorised Banks

Para 1-2

1. SHORT TITLE AND COMMENCEMENT

1.1 The scheme is called “Scheme for payment of pensions to Central Government Civil Pensioners through Authorised Banks” applicable w.e.f.01.01.1990. Authority: CGA’s UO No.1 (7) (1) 2000/TA/377 Dated 19-8-2002

1.2 Establishment of CPAO

To relieve the Comptroller & Auditor General of India of the payment and accounting work relating to Central (Civil) Pensions, and also to simplify the existing procedures relating to the payment of Central (Civil) Pensions, and computerizing the accounting work connected with it, a scheme was approved by the Government of India in consultation with the Department of Pensions & Pensioners’ Welfare, Comptroller & Auditor General of India, Reserve Bank of India and National Informatics Centre. The payment of pension to Freedom Fighter pensioners has also been covered under the scheme. Central Pension Accounting Office (CPAO) was established vide O.M. No. M. 23021/1/89/MF-CGA (Coord) – CPAO Dated 2.5.1989 to implement the scheme.

According to MoF, DoE, CGA’s O.M.No M-23021/1/89-MF-CGA/Pension/808 Dated 29th December 1989, CPAO will commence functioning w.e.f. 1.1.1990 and will be headed by Chief Controller of Accounts (Pension) placed under Controller General of Accounts, Ministry of Finance. All Pension Payment Orders (relating to Central Civil Pensioners and Freedom Fighter Pensioners) and subsequent amendments to the PPOs in respect of the payment through Public Sector Banks will be sent to the CPAO. In turn, CPAO will send the PPOs to the banks under its special seal authority and will maintain a Central Data Bank containing details indicated in the PPO. The post of Chief Controller of Accounts (Pension) has been re-designated as Chief Controller (Pensions). Authority: Cabinet Note bearing No. M. 23021/2/87/MF-CGA (Pt.) dated-03.03.1989, CGA’s O.M. No. 23021/1/89/MF.CGA (Coord.) – CPAO dated-02.05.1989 and OM No. M.23021/1/89/MF-CGA/Pension/808 dated-29.12.1989.

2. EXTENT OF APPLICATION

CPAO has been entrusted with the responsibility of administering the “Scheme for Payment of Pensions to Central Government Civil Pensioners through Authorized Banks” The scheme shall apply to:-

(i) Pension and other amenities to the former Presidents and Vice-Presidents of India including payment of medical expenses and travel expenses towards medical check-up of the spouse of the former and deceased Presidents and Vice-Presidents.
(ii) Former Members of Parliament
(iii) Retired Judges of Supreme Court.
(iv) Retired Judges of High Courts.
(v) All India Service Pensioners w.e.f. 01.04.2008
(vi) All Civil Pensioners of Central Government retired from Ministries or Departments (other than Railways, Post, Telecommunication and Defence).
(vii) Pensioners of Union Territory Administrations without legislatures i.e. Chandigarh, Andaman and Nicobar Islands, Dadra and Nagar Haveli and Daman and Diu, Lakshadweep and Ladakh.
(viii) Pensioners of NCT of Delhi as an interim arrangement.
(ix) Pensions to Leaders and Trainees including volunteer Girls and Tibetan Female Nursing
Assistants (PBORs) of Special Frontier Force (SFF) w.e.f. January 2009.
(x) Freedom Fighter Pensioners covered under Swatantrata Sainik Samman Pension Scheme, 1980 (renamed as Swatantrata Sainik Samman Yojana w.e.f.01.04.2017).
(xi) Payment of ex-gratia pension to families of deceased CPF beneficiaries. w.e.f. 01.01.1986.
(xii) Divisional Accountants/Divisional Accounts Officers (Forest, PWD, etc.) of the State AGs.
(xiii) Pensioners of Home Department of Union Territory of Jammu & Kashmir (including Jammu and Kashmir Police)*
*Authority:O/o Pr.CCA MHA letter dated 10th September,2024.

3 DEATH / RETIREMENT GRATUITY

Unless otherwise specified, payment of Death/Retirement gratuity is not covered under the Scheme. However, if additional gratuity becomes due after commencement of pension through CPPC of authorized banks, the same can be authorized by the PAO through CPAO for payment by CPPC.

4. RELEVANT PROVISIONS OF CENTRAL TREASURY RULES (CTRs)

The relevant provisions of the CTRs relating to payment of pension to the pensioners covered under CCS (Pension) Rules 2021 stand modied in the light of the CCS (Pension) Rules 2021 and Central Government Account(Receipts and Payments) Rules, 2022 as amended from time to time.

[Official Link: https://cpao.nic.in/pdf/scheme_bookle_new_feb.pdf]