The federal government has removed commercial banks from the routine administrative process of biometric verification and Proof of Life Certificate (PoLC) validation for federal pensioners, shifting the verification mechanism to the National Database and Registration Authority (NADRA).
Under revised Standard Operating Procedures issued by the Finance Division, NADRA will transmit a pensioner’s Digital Life Signal directly to the Controller General of Accounts (CGA) or Military Accountant General (MAG) through a secure application programming interface (API), bypassing commercial banking channels.
Commercial banks will instead primarily serve as pension disbursement agencies and will no longer ordinarily collect, retain or independently validate pensioners’ biometric information or Proof of Life Certificates.
Table of Contents
Key Takeaways
- New Verification Authority: NADRA
- Previous Administrative Role: Commercial banks
- Digital Connection: NADRA to CGA/MAG
- Technology: Secure API and Digital Life Signal
- Bank Role: Pension disbursement agency
- Verification Frequency: At least once every 180 days
- Fixed March/September Verification: Replaced
- Pension Account Dormancy: Standard bank dormancy rules do not apply for pension disbursement purposes
- Digital Option: NADRA PakID mobile app
- Pension Payment System: Direct Credit System (DCS)
NADRA Takes Over Digital Pension Verification
The revised system establishes a direct digital connection between NADRA and the government accounting authorities responsible for pension administration.
Once a pensioner successfully completes the required verification through NADRA, a Digital Life Signal will be transmitted electronically to the CGA or MAG.
This means the verification information no longer has to move through a commercial bank before reaching the relevant pension authority.
The change is intended to make the process more convenient for pensioners while strengthening digital verification and reducing unnecessary administrative steps.
Banks Will Focus on Pension Disbursement
Commercial banks have not been removed from pension payments altogether.
Instead, their role has been narrowed primarily to that of Pension Disbursement Agencies.
Under the revised procedures, banks will ordinarily have no statutory or administrative responsibility for the verification, collection, retention or validation of Proof of Life Certificates or biometric information.
Banks are also not permitted to compel pensioners to visit branches solely for routine Proof of Life biometric verification.
There is a limited exception: a bank branch may facilitate verification when it is operating specifically as an authorised NADRA PoLC centre or operational conduit.
Pensioners Can Use NADRA PakID App
The new system gives pensioners several ways to complete their Proof of Life verification.
Eligible pensioners can use the NADRA PakID mobile application or visit authorised NADRA channels, including:
- NADRA Registration Centers
- NADRA Mobile Units
- e-Sahulat franchises
- Designated bank branches operating specifically as NADRA PoLC centres
This means a pensioner visiting an ordinary bank branch should no longer be required to submit physical Proof of Life documentation to the bank as part of routine banking procedures.
Verification Required Every 180 Days
Another major change concerns how often pensioners must prove they are alive.
Previously, the verification process operated around fixed March and September schedules.
Under the revised SOPs, verification must instead be completed at least once every six months, or 180 days.
Pensioners can complete verification at any point within the applicable 180-day period, providing greater flexibility than the previous fixed-month system.
Pension Accounts Cannot Be Made Dormant for Pension Payments
The government has also introduced an important protection concerning pension accounts.
Under the revised rules, standard bank dormancy requirements do not apply to pension-disbursing accounts for the purpose of processing and paying pensions.
Banks therefore cannot independently make a pension account dormant merely because routine Proof of Life documentation has not been submitted to the bank.
They are also barred from imposing debit restrictions solely because a pensioner has not submitted Proof of Life to the bank.
This addresses a major practical concern for pensioners who could previously face difficulties accessing pension payments because of account status or verification requirements.
What Happens If a Digital Life Signal Is Not Received?
Removing bank dormancy rules does not mean Proof of Life verification has been abolished.
If the relevant pension authority does not receive a valid Digital Life Signal within six consecutive months, the pension case can move into suspense status under the government’s pension administration system.
Once a valid life signal is received, the system can restore active status and release applicable accumulated pension arrears without requiring approval from the commercial bank.
The distinction is important: the government pension authority manages the verification-related status, rather than a commercial bank independently suspending the pension account.
Physical ‘Disburser’s Half’ Process Abolished
The revised SOPs also formally eliminate the physical “Disburser’s Half” documentation process previously associated with pension payments.
Federal pensions will now be paid exclusively through the Direct Credit System (DCS).
This further reduces reliance on paper-based processes and shifts federal pension administration toward direct digital payments and electronic verification.
Family Pensioners Still Have Additional Requirements
The revised system also covers family pensioners, although additional documentation may be required in certain circumstances.
Family pensioners whose eligibility depends on marital status will continue to be required to submit the applicable Form-12 declaration.
Where real-time information about remarriage or marital status is unavailable in official records, pensioners may need to approach designated accounts offices or pension facilitation centres to complete the required manual declaration.
The government has therefore retained alternative procedures for cases that cannot be resolved completely through digital verification.
What Happens to Already Dormant Pension Accounts?
The SOPs also provide a mechanism for reactivating pension accounts that had previously been classified as dormant.
Accounts marked dormant before August 22, 2026 can be reactivated through NADRA biometric verification at an authorised branch acting as a PoLC centre or following confirmation of pension receipt from the CGA/MAG from September 2026 onward.
This is intended to ensure that pensioners affected by previous dormancy procedures can transition to the new system.
Banks Cannot Collect Physical Life Certificates in Normal Capacity
Under the new arrangement, commercial banks should not collect or retain physical Proof of Life Certificates or pensioners’ biometric information while acting in their ordinary banking capacity.
If a pensioner approaches a normal branch with paper documentation for routine Proof of Life verification, the bank should direct the individual toward the NADRA PakID app or an authorised NADRA verification channel.
The objective is to establish NADRA as the central identity-verification mechanism rather than maintaining separate verification processes across commercial banks.
Monthly Pension Processing Will Become More Digital
The revised procedures also establish a more structured digital pension-processing cycle.
Pension rolls are to be generated by the 24th of each month and verified by the 26th, with payments executed through the State Bank of Pakistan’s Raast or other micropayment channels, according to the revised framework.
NADRA verification logs will also be subject to reconciliation and periodic auditing.
These controls are intended to combine easier access for pensioners with stronger verification of pension payments.
No Joint Pension Accounts Under General Rule
The revised SOPs also address how pension accounts should be maintained.
Banks are required to open applicable PLS or current accounts in the sole name of the pensioner or eligible family pensioner.
Joint accounts are generally prohibited except where specifically permitted under the applicable Federal Government Receipt and Payment Rules.
The accounts are also to be maintained without service charges under the revised framework.
Why the Government Changed the System
The Finance Division developed the revised SOPs in consultation with stakeholders including NADRA, the State Bank of Pakistan, Accountant General offices and the Ministry of Finance.
The objective is to reduce inconvenience for pensioners while strengthening verification through direct government-to-government digital connectivity.
For elderly pensioners in particular, eliminating unnecessary visits to commercial banks could make routine pension administration considerably easier.
Why This Matters for Pensioners
The revised system introduces several practical changes for federal pensioners:
- Routine biometric verification shifts from banks to NADRA
- Proof of Life can be completed digitally through PakID
- Verification can occur at any point within the 180-day interval
- Banks cannot demand routine branch visits for Proof of Life
- Pension accounts cannot be made dormant for pension-payment purposes under standard banking dormancy rules
- Banks cannot impose debit restrictions merely because Proof of Life was not submitted to them
- Physical Disburser’s Half documentation has been abolished
- Digital Life Signals move directly from NADRA to CGA/MAG
- Pension payments continue through the Direct Credit System
Together, the measures significantly reduce the administrative role played by commercial banks in federal pension verification.
What Pensioners Should Do Now
Pensioners still need to ensure that their Proof of Life verification remains current.
Instead of submitting routine certificates to their commercial bank, they can complete verification through the NADRA PakID app or another authorised NADRA channel.
Verification should be completed at least once within every 180-day period to ensure the relevant pension authority continues receiving a valid Digital Life Signal.
Family pensioners should also ensure that any required marital-status declarations remain up to date.
FAQs
Have banks been completely removed from pension payments?
No. Commercial banks will continue to disburse pension payments, but their ordinary administrative role in biometric and Proof of Life verification has been removed.
Who will now verify pensioners?
NADRA will handle digital identity and Proof of Life verification and transmit the Digital Life Signal directly to the CGA or MAG.
Do pensioners still need Proof of Life verification?
Yes. Proof of Life remains mandatory. Under the revised procedures, verification is generally required at least once every 180 days.
Do pensioners have to visit a bank every six months?
No. Routine verification can be completed through the NADRA PakID mobile app or other authorised NADRA channels. A designated bank branch may also operate as a NADRA PoLC centre.
Are March and September still the mandatory verification months?
No. The fixed March and September schedule has been replaced. Pensioners can complete verification at any point within the applicable 180-day interval.
Can a bank make a pension account dormant for missing Proof of Life?
Banks cannot apply ordinary dormancy treatment to a pension-disbursing account for pension processing merely because Proof of Life was not submitted to the bank.
What happens if a pensioner does not verify within six months?
If the CGA/MAG does not receive a valid Digital Life Signal for six consecutive months, the pension may move into suspense status until valid verification is received.
Can pensioners still submit physical life certificates to their bank?
Banks acting in their ordinary banking capacity are no longer supposed to collect or validate physical Proof of Life Certificates. Pensioners should instead use NADRA’s designated verification channels.
When did the Finance Division issue the revised SOPs?
The Finance Division lists the Revised Standard Operating Procedure for Digital Proof of Life and Pension Disbursement for Pensioners dated September 7, 2026.
