The change to electronic bank transfers is a part of reforms to the country’s pension system
After Dhaka, pensioners outside the capital shall also receive their monthly payments through electronic transfers from banks starting the next fiscal year.
A Finance Ministry official said that the government had decided to transfer a total of TK 16,915cr for pension allocation from different divisions and ministries to the Finance Division, for smooth operation of the electronic transfers. The amount is roughly 7.4% of the total budget.
The change to electronic bank transfers is a part of reforms to the country’s pension system to make it more modern, the official said.
The official added that the Finance Division issued a circular to all ministries and divisions on Monday regarding the transfer of the pension allocation funds.
According to Finance Ministry circular staff, the Ministries of Defence, Telecommunications and Railways will continue to withdraw pensions from their respective state agencies, and not through the Finance Division.
Meanwhile, an SMS notification system for pensioners has also been implemented in Dhaka as part of the pension system reforms. ]
The reforms have already been introduced in Rajshahi and Chittagong through pilot projects, with the aim of launching them countrywide in the next fiscal year.