Friday, 9 December 2011

Pension payment to Government pensioners by banks

Reserve Bank of India monitors payment of pension to government pensioners by banks. RBI released Frequently asked questions and answers about the doubts of pensioners in the head of scheme of payment of pension to Government pensioners by authorized banks. The summary of the same is as follows:- 

1. A pensioner can draw pension through a bank: Any pensioner including a government employee can make option to draw pension from any authorized bank’s branch, even if he is drawing pension from a treasury or post office.

2. Pension sanctioning authority: In case of government servant, the office or department at which the employee last worked is the pension sanctioning authority.

3. Fixation of pension: first time of fixation of pension made by the pension sanctioning authority and in case of re-fixation of pay or any other changes, if any, made by the paying bank branch as per the instructions of the government.

4. Need of separate pension account in a bank: There is no need to open a separate pension account in a bank, if the pensioner already has a savings account or current account in the bank branch where the pensioner selected for crediting pension.

4. Possibility of Joint account: A pensioner can open joint account with spouse to credit the pension amount and it canoperate with “Former or survivor” or “either or survivor”.

5. Minimum balance for pension account: There is no specified rule by RBI about the minimum balance of pension account. Even though some banks allow zero balance in the bank account for pension.

6. Pension Payment Orders (PPOs): Pension paying authority in Ministries or Departments sends PPOs to the bank branch where the pensioner opted for crediting pension amount.

7. Time of pension payment credit: The credit of pension payment in the concerned bank account in any of the last four working day of every month. But in March the payment made only in first working day of April.

8. Shifting of pension payment account: A pensioner can transfer pension payment account to another branch of the same bank or to any other authorized bank.

9. Procedure for transfer of pension paying bank account: With present the photocopy of the old PPO the pensioner can avail pension up to 3 months and within this time period the new bank branch should get all necessary documents.

10. Identification for pension: The pensioner should present the paying bank for identification and the bank has to collect specimen signature or thumb/toe impression of the pensioner. If the pensioner handicapped / incapacitated and not able to present in the bank branch, the bank official should visit the residence or hospital for identification and collecting specimen signature or thumb/toe impression.

11. Retain half part of the PPO: The pensioner can keep the half part of the PPO for record and can update it in time to time from the pension paying branch, when there is any change or addition such as revision of basic pension or dearness relief happened.

13. Keeping records by paying branch: The pension paying branch is liable to keep detailed record of pension of the pensioner in prescribed format and make it authorized by the concerned officer.

14. Excess credit in pension account: The pension paying branch can keep the excess amount if of pension if any, credited in pensioners’ account by any reason from the pensioner or from the legal hires of the pensioner.

15. Certificates to present by the pensioner: The pensioner is liable to give Life certificate/ Non-Employment certificate or Employment certificate in the pension payment branch in November every year. If the pensioner is not in a place to present in the bank due to serious illness or incapacitation, bank official will visit the pensioner for the certifying the life certificate.

16. Operate pension account by power of attorney: A pension account cannot operate by the holder of a power of attorney, but the pensioner can avail cheque book facility and can give standing instructions to transfer money from the pension account.

17. TDS from pension account: The pension paying branch is liable to deduct income tax from pension account as per the existing income tax rule and liable to issue TDS certificate on April every year. The pensioner can give form 15H to avoid Tax deduction at source, if the pensioner is not liable to pay tax.

18. Pensioner Unable to sign due to sickness or handicapped: If a pensioner is sick or lost his hands or legs or both can put any mark or thumb/toe impression as per the case in the pension account opening format and cheque or withdrawalform with identification of two independent witnesses including one bank official. If such a pensioner is not able to visit the bank branch can send anybody with such a marked cheque with identification of two independent witnesses and with the specimen signature of the person who withdraw money.

19. Commencement of family pension:  After the death of the pensioner the person who indicated in the PPO can receive family pension by producing the death certificate of the pensioner and filled up application form.

20. Payment of Dearness Relief at revised rate:   The extra relief on pension and family pension will release by the bank immediately after getting necessary orders from the government. The bank can collect this information from concerned website or other official medias to issue revised dearness relief or any such revision without waiting for individual orders.  The pensioner also can collect information about any changes of pension from related websites.

21. Availability of pension slips: The pension paying branch has to issue pension slips to pensioners in specified format at the time of first pension payment and after that any change or revision in pension occurred.

23. Grievances of pension: The pensioner can approach the manager of the bank branch and then to the head office of the concerned bank and then the bank ombudsman for any unsolved complaint related with the service of bank. For any other pension related issues, the pensioner should approach the pension paying authority.

24. Compensation for delayed payment: The pensioner can get compensation for any delayed credit of pension amount or any arrears of pension with normal bank rate and an extra 2 %, and this amount may credit to the account automatically without any claim.

The above mentioned points are the summary of the Frequently asked questions of government pensioners those who get payment of pension through authorized banks and we hope that this will clear all the doubts of government pensioners about payment of pension through authorized banks.

Related posts

Pension, PF, Gratuity through e-payment

1 comment :

  1. it is convenient for pensioners to get their pension through a bank. thanks