Payment of salary through scheduled banks -AG 19.10.2023

Payment of salary through scheduled banks -AG 19.10.2023

In recent developments from the Office of the Accountant General Punjab, a new update regarding the disbursement of government employee salaries has been issued. This update, as detailed in the official communication dated October 19, 2023, introduces significant changes in the list of banks authorized for salary disbursements. If you are a government employee, pensioner, or involved in the management of such payments, it is crucial to be aware of these updates and the procedures involved. This comprehensive guide will walk you through the recent changes, the updated list of scheduled banks, and the steps you need to follow for a smooth salary payment process.

New Developments in Salary Payment Procedures

On October 19, 2023, the Office of the Accountant General Punjab issued a notification to all District Accounts Officers, Treasury Officers, and related officials concerning the payment of salaries through scheduled banks. This notice clarifies several aspects of the salary disbursement process and updates the list of authorized banks.

Key Highlights of the Update

1. Inclusion of New Banks: The recent circular updates the list of banks through which the salaries of Government of Punjab employees can be disbursed. Notably, Bank Islami (Pakistan) Limited has been added to the list of approved banks. This inclusion expands the options available for the disbursement of salaries and ensures a broader range of banking services for government employees.
2. Updated List of Scheduled Banks: The official communication includes an updated list of banks authorized for salary disbursement. This list now features 17 scheduled banks, providing government employees with multiple choices for where they can receive their salaries. Here is the updated list for your reference:Sr. No.Bank Name1.National Bank of Pakistan2.The Bank of Punjab3.Allied Bank Limited4.Bank Alfalah Limited5.Bank Al Habib Limited6.Habib Bank Limited7.United Bank Limited8.Askari Commercial Bank9.Meezan Bank Limited10.NIB Bank Limited11.Soneri Bank Limited12.Faysal Bank Limited13.Standard Chartered Bank (Pakistan) Limited14.Dubai Islamic Bank (Pakistan) Limited15.Bank Islami (Pakistan) Limited16.Metropolitan Bank Limited17.Standard Chartered Bank (Pakistan) Limited
3. Pension Disbursement: The notice also clarifies that pensions may be disbursed through any of the scheduled banks as outlined in the Finance Department letter No. FD (Ilia-M) I-153/2011 dated January 20, 2020. This provision ensures that pensioners have access to a range of banks for the disbursement of their pensions, offering greater flexibility and convenience.

Why This Update Matters

1. Expanded Options for Employees and Pensioners

The inclusion of Bank Islami (Pakistan) Limited in the list of approved banks is a significant development. It not only provides additional choices for salary disbursement but also potentially offers new banking products and services tailored for government employees.

2. Improved Flexibility in Salary Payments

With 17 banks now authorized for salary disbursement, government employees and pensioners have more flexibility in managing their salary accounts. This change is expected to improve the efficiency of salary disbursements and provide employees with more options to choose a bank that best suits their needs.

3. Enhanced Convenience for Pensioners

For pensioners, the update reaffirms that they can receive their pensions through any of the scheduled banks. This flexibility is beneficial for pensioners who may prefer specific banks for convenience or personal preference.

Steps for Updating Bank Account Information

If you are a government employee or pensioner and need to update your bank account information for salary or pension payments, follow these steps:

For Employees

1. Submit a Change Form: Complete the bank account change form and ensure it is signed by the Drawing and Disbursing Officer (DDO) of your department or office.
2. Obtain a No-Objection Certificate (NOC): Get an NOC from your current bank, which must be in the specified format and countersigned by the DDO.
3. Submit Documents: Forward the completed change form and NOC to the Accounts Office for processing.

For Pensioners

1. Written Request: Submit a formal written request to change your bank account details.
2. Obtain an NOC: Get an NOC from your current bank in the specified format.
3. Submit Documents: Provide the written request and NOC to the Accounts Office for updating your account details.

Ensuring Compliance with Updated SOPs

It is crucial for all concerned officials and employees to adhere to the updated Standard Operating Procedures (SOPs) for changing bank accounts and IBANs. The procedures outlined in the October 19, 2023, notification are designed to streamline the salary and pension disbursement processes and ensure compliance with legal and financial regulations.

**1. Training and Awareness

Ensure that all staff handling SAP transactions and salary disbursements are properly trained. The Accounts Offices must appoint only those trained in SAP processes and have their authorization managed appropriately.

**2. Monitoring and Reporting

Regularly monitor the use of SAP User IDs and passwords to prevent unauthorized access. Report any instances of misuse or violations immediately to ensure that appropriate disciplinary actions are taken.

Conclusion

The recent update from the Office of the Accountant General Punjab marks an important step in improving the efficiency and flexibility of salary and pension disbursements. With the inclusion of Bank Islami (Pakistan) Limited in the list of authorized banks and clear guidelines for the update of bank account information, government employees and pensioners now have more options and a streamlined process for managing their salary and pension payments.

For those involved in managing or receiving salaries and pensions, it is essential to understand these updates and follow the outlined procedures for a smooth transition to the new banking arrangements. Adherence to these updated SOPs will not only ensure compliance with legal requirements but also enhance the overall efficiency of the payment processes.

For further details or specific queries, refer to the official notification or contact your local Accounts Office.