Govt minimises commercial banks' role in pension payments
ISLAMABAD: The finance ministry on Monday eliminated the administrative role of commercial banks in the biometric verification and validation of proof-of-life certificates (PoLCs), in a move aimed at facilitating pensioners. The government also directed that pensioners’ bank accounts would not be subject to account dormancy requirements. The Ministry of Finance issued revised standard operating…
The federal government has eliminated commercial banks' involvement in the verification and validation of biometric proof-of-life certificates (PoLCs) for pensioners, according to a notification from the Ministry of Finance. Nadra, the National Database and Registration Authority, will now transmit digital life signals directly to the Controller General of Accounts (CGA) and Military Accountant General (MAG), bypassing traditional banking channels.
Commercial banks will serve solely as pension disbursement agencies, with no statutory or administrative role in PoLC verification, collection, retention, or validation.
Pensioners' bank accounts will no longer be subject to account dormancy requirements, ensuring uninterrupted access to pension payments. The government has also abolished the physical "Disburser's Half" process, transitioning to electronic disbursements through the Direct Credit System (DCS). Pensioners can complete PoLC verification via the Nadra PakID mobile app or authorized Nadra channels such as Registration Centers, Mobile Units, e-Sahulat franchises, or bank branches designated as Nadra PoLC centers.
Verification must occur at least once every six months or 180 days, replacing the previous bi-annual schedule. Family pensioners must submit Form-12 declarations under certain marital status conditions. Account transfers should be routed through the target scheduled bank, and overpayments or discrepancies should be reported directly to the relevant accounts office and the bank.
To activate dormant pensioners' accounts, pensioners can undergo biometric verification through Nadra's system at designated bank branches or receive a pension credit from the CGA/MAG starting September 2026. Banks are prohibited from collecting, retaining, or verifying physical life certificates or biometric data for pension accounts. If a pensioner visits a branch with paper documentation, the bank must direct them to the Nadra Pak-ID app or a designated Nadra registration center instead.
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