Stoppage of Cash Disbursement to Defence Pensioners

Sub: Stoppage of Cash Disbursement to Defence Pensioners.

As per existing provisions, disbursement of defence pension should be made by crediting the amount of pension to bank account of pensioners. However, it is noticed that some PDAs (other than banks) are still making payment of defence pension through cash disbursement.

Cash Disbursement by the Pension Disbursement Authorities has been viewed seriously by the Ministry and it has been strongly recommended that the cash disbursement of pension should be stopped immediately and same should be credited to pensioner’s bank account with immediate effect.

In view of the above, all the PDAs are advised to suggest their defence pensioner who are receiving defence pension in cash from them, to open bank account in authorized Banks and payment of defence pension be credited to that account only.

All the Pension Disbursement Authorities are further advised to ensure that no cash disbursement of defence pensioners is made by them.