SBP directives: Banks prepare to disburse pensions

KARACHI: Commercial banks have stepped up efforts to open up pensioner accounts as per directives of the State Bank of Pakistan (SBP), bankers say.

About two months ago, the SBP had directed all commercial banks to open pensioner accounts and start disbursing money from January 1 in an attempt to comply with Supreme Court directives and ease the problems of pensioners.

Before the directive, only the National Bank of Pakistan (NBP) was allowed to disburse pensions all over the country.

Standard Chartered Bank (SCB) with a network of 162 branches across the country is taking all steps to implement the SBP directives for disbursing pension money, said the bank’s Head of Corporate Affairs, Ali Habib.

“Information boards have been set up in all our branches to give necessary information to pensioners. Besides, our managing directors have instructed branches to complete preparations for pension payment and now pensioners will be our account holders,” said Vice President and Head of Marketing Bank of Khyber, Syed Ali Nawaz Gilani.

The SBP directive would help ease the burden on NBP and provide pensioners with more options, said Gilani.

Head of Marketing First Women Bank Limited, Shaheen Zamir, said that the bank is implementing all directives of the central bank regarding pensioners. The First Women Bank has 38 branches in 23 cities of the country.

“It is just the beginning and it will take time,” said Chairman Banking and Insurance Sub-committee Karachi Chamber of Commerce and Industry, Ateequr Rahman, adding that it is a fact that banks are at very initial stages of starting pension disbursement.

Analyst at JS Global Capital Limited, Mustafa Bilwani, said commercial banks will only act swiftly when they are offered incentives for pension disbursement.

Commercial banks will have to follow some conditions while opening pension accounts. The account must be for one person (not a joint account), current and saving accounts can be opened, it is mandatory for the pensioner to submit an option form about direct credit of pension through a bank verified by the concerned branch manager, undertaking-cum-indemnity, life certificate (after every six months) and pensioners will be exempt from all service charges.

Published in The Express Tribune, January 9^th, 2011.