The government has now streamlined how Fixed Medical Allowance (FMA) will be paid to pensioners and family pensioners covered under the National Pension System (NPS), making the process more automatic and bank-driven. According to a recent Office Memorandum issued by the Finance Ministry dated April 16, 2026, eligible NPS pensioners will receive their medical allowance directly in their bank accounts without having to submit bills. How will FMA be paid now? The memorandum clarifies that the allowance will be disbursed through pension disbursing banks via their Central Pension Processing Centres (CPPCs).