Pension payment Through Direct Credit System (DCS)

Government of Pakistan, Finance Division (Regulations Wing) has issued a Notification on 06-01-2021 in connection with Pension payment Through Direct Credit System (DCS). The details of the DCS pension are as under:


Pension payment Through Direct Credit System (DCS)

I am directed to refer to the Finance Division’s letter No. 12(9)Reg.6/2012(pt)-1453 dated 5th January 2016 regarding payment of pension through DCS and to state that following clarifications are hereby made:


Clarifications Regarding DCS


  1. The pension shall be paid to a pensioner through a bank account either current or PLS maintained in his own name.
  2. For payment of pension through a bank account as mentioned at (i) above, a joint account shall not be valid dedicated pension bank account shall not be mandatory for the drawl of pension.
  1. The requirement of indemnity bond from a pensioner, as laid down in para 3(f) and 9(xii) of the Revised SOP 2014 issued vide Finance Division’s letter No.12(9))Reg.6/2012-568, dated 14-07-2014 is discontinued.
  2. It is highlighted that Finance Division vide letter No.F.9(3)R.6/2015-548 dated 28-09-2020 has already decided that no separate bank account is required for drawl/disbursement of pension for all new retirees and that it may be ensured that the pensioner starts receiving pension payment on the date it falls due, in the same bank account, he or she was receiving the salary before retirement if he or she desires so.
  3. It is pertinent to mention that after necessary amendments in the relevant rules, the Federal Government is going to launch a system that would cater to all the requirements/documentation digitally to further facilitate the pensioners. Salient features of the system are as under:-


Salient Features of the New Pension System


  1. A pensioner drawing pension under clause (iii) of Sub-rule(6) of Federal Treasury Rules shall be facilitated to undergo biometric verification from any branch of a bank maintaining his pension account, every year in the months of March and October. If the pensioner is unable to undergo biometric verification due to incapacitation by bodily illness, infirmity, or if his fingerprints do not exist due to old or a genetic condition, he will provide a life certificate signed by a person authorized under rule 343 every six months.
  2. The declaration shall be obtained yearly from pensioners whose pension is terminable by their marriage or remarriage and shall be attached to the pension bill paid In September instead of December and June.
  3. Further, submission of declaration regarding marriage or remarriage will be dispensed with after the widow or daughter of the pensioner attains the age of sixty years.
  4. If a person drawing pension fails to submit a life certificate or fails to undergo biometric verification during the months of March and October or a pensioner does not draw a pension for consecutive six months, the account shall become dormant.
  5. Accordingly, it is requested that necessary instructions any please be issued to all the banks / concerned Accounts Offices In this regard to facilitate the pensioners.


Pension payment Through Direct Credit System (DCS)

Pension Payment through DCS

Share this post

2 thoughts on “Pension payment Through Direct Credit System (DCS)

Post Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.