The federal government has completely abolished the role of commercial banks in verifying the “proof of life” for pensioners. Recently, the Finance Division issued a revised Standard Operating Procedure (SOP). This new policy shifts the entire verification process to a digital system. Now, the National Database and Registration Authority (NADRA) links directly with the Controller General of Accounts (CGA) and the Military Accountant General (MAG) for pension verification.
NADRA Digitizes Pension Verification: How the Digital Life Signal Works
Following the Prime Minister’s directives, the new mechanism bypasses commercial banking channels entirely. NADRA will now transmit a “Digital Life Signal” directly to the CGA/MAG through a secure API. Consequently, pensioners no longer need to visit banks for routine biometric verification or submit physical Proof of Life Certificates (POLCs). Furthermore, the government abolished the traditional physical “Disburser’s Half” process. Digital ledgers maintained by the CGA/MAG will now replace paper records.
Pensioners must now verify their proof of life at least once every six months, or 180 days. Previously, the government required verification strictly in March and September. However, that fixed schedule is gone. Pensioners can now complete their verification at any time during the six-month window. To do this, they can use the NADRA Pak-ID mobile application, NADRA Registration Centres, Mobile Units, or e-Sahulat franchises.
Strict New Rules for Commercial Banks
Under the revised SOP, commercial banks will function solely as pension disbursement agencies. They have absolutely no statutory or administrative role in collecting or validating biometric data. Importantly, the government has legally barred banks from making pension accounts dormant. Banks cannot force pensioners to visit branches for biometric verification. If pensioners bring physical documents to a bank, staff must immediately direct them to the Pak-ID application or designated NADRA facilities.
Additionally, pension accounts must remain free of service charges. Banks must maintain these accounts in the sole name of the pensioner or eligible family member. Joint accounts are strictly prohibited unless specifically permitted under the Federal Government Receipt and Payment Rules, 2025.
To speed up payments, the CGA/MAG will generate pension rolls by the 24th and verify them by the 26th of every month. The government will then execute these payments through RAAST or other micropayment channels.
Suspense Status & Manual Fallback
The SOP also introduces a new “Suspense Status” mechanism. If the CGA/MAG does not receive a valid Digital Life Signal for six consecutive months, they will place the account in suspense. Pension payments will be temporarily held. However, the account will never be declared dormant. Once a valid life signal arrives, the account returns to active status. The system will then automatically release accrued pension arrears without requiring any bank approval.
Finally, the government retained a manual fallback mechanism for elderly pensioners. Persons without digital access or those with debilitating medical conditions can still submit manual documents. They can submit manual Life Certificates (Form-10) or family pension declarations (Form-12) at designated District Accounts Offices or Pension Facilitation Centres. Commercial banks, however, are strictly prohibited from accepting these forms.
Ultimately, this move aims to simplify disbursement, eliminate unnecessary bank visits, ensure real-time verification, and drastically reduce fraudulent pension payments.
