Mr Grimes retired in 2010 after 37 years working at the Irish financial regulator.
A spokesperson for the Central Bank confirmed that Mr Grimes had been brought out of retirement to oversee the payment plan until the end of 2014.
“Tony Grimes is chairman of the National Payments Plan Steering Committee,” a spokesperson said.
“While we are unable to comment on individuals the Central Bank only hires back retired staff in very exceptional circumstances subject to public sector norms and pension scheme rules.”
The Central Bank said that it was unable to discuss the terms of Mr Grimes’ remuneration, but confirmed that he is being paid for the role as well as receiving his pension from the bank.
Mr Grimes retired in 2010 on a finishing salary of €249,674. However, as the bank did not replace him until Sept 2011, he received €64,356 until his replacement, Stefan Gerlach, was appointed.
Sinn Féin finance spokesman Pearse Doherty said that there needs to be a change in culture in the civil service that will put an end to people being taken back on contract basis after they have had long and well paid careers.
“When you hear stories like this, you know the golden circle is alive and well,” he said.