• Banks barred from independently closing, suspending pensioners’ accounts
• SOPs allow pensioners to use Nadra centres, mobile app for proof-of-life certificates, relax verification rules
ISLAMABAD: In a move aimed at facilitating pensioners, the federal government on Monday eliminated commercial banks’ administrative role in biometric verification and validation of proof-of-life certificates (PoLCs) and barred them from independently suspending or closing pensioners’ accounts.
According to the finance ministry, the National Database and Registration Authority (Nadra) has been integrated with the Controller General of Accounts (CGA) and the Military Accountant General (MAG) via a secure application programming interface (API) to bypass commercial banking channels for the proof of life (the digital life signal). “The Digital Life Signal is transmitted directly from Nadra to the CGA/MAG…,” the notification said.
As per the new SOPs, the pensioners will be able to complete PoLC verification via the Nadra Pak-ID Mobile App or other authorised Nadra channels, such as the Nadra Registration Centre, mobile units, e-Sahulat franchises, or bank branches operating strictly as Nadra-designated PoLC centres.
The new rules also mandated biannual verification at the pensioners’ own convenience, replacing the existing schedule fixed for March and September. For family pensions, Form-12 declarations are required.
Similarly, banks shall not collect or verify physical life certificates or biometric data from pensioners in their ordinary banking capacity, nor shall they require or compel pensioners to visit bank branches for biometric verification for pension accounts for standard PoLC purposes.
In cases where pensioners are unable to use the Pak-ID Mobile App or other options, or in family pension cases where real-time data regarding remarriage or marital status has not been updated in the official record, individuals may visit a designated district accounts office or a pension facilitation centre to submit a manual life certificate (Form-10) or a declaration (Form-12) regarding remarriage or marital status.
No dormant accounts
The banks will not mark pension-disbursing accounts dormant, the SOPs said, adding that the pensioners can activate their dormant accounts either through Nadra biometric verification system hosted at bank branches acting as PoLC verification centres or by receiving pension credit from the CGA/MAG from September. Similarly, banks have been directed to activate accounts marked dormant prior to August 22, 2026, upon either Nadra verification or confirmation of pension receipt from the CGA/MAG.
The finance ministry said the new SOPs superseded all previous SOPs and formally abolished the physical ‘Disburser’s Half’ process, as federal pensions are now disbursed exclusively through the Direct Credit System (DCS).
For ledger administration and the suspense threshold, the system auto-calculates the next due date based on the latest successful verification, and if no valid signal is received within six consecutive months, the account transitions to ‘suspense’ status. However, receipt of a valid signal automatically restores active status and releases accrued arrears without requiring bank approval.
The new SOPs mandate that banks shall open profit-and-loss-sharing (PLS) or current accounts exclusively in the sole name of the pensioner or the eligible family pensioner. “Joint accounts are strictly prohibited, except where explicitly provided under Rule 35(8) of the Federal Government Receipt and Payment Rules, 2025, and accounts shall be maintained free of all service charges,” the notification said.
Moreover, if an account is placed in suspense status by the CGA/MAG and funds remain uncollected, banks shall remit funds to the government receipt head only upon receipt of formal notice from the CGA.
Published in Dawn, September 9th, 2026
