Receiving a pension on time is essential for retired government employees who rely on these payments for their livelihood. These pensions are distributed through schemes set by central and state governments and processed by authorised banks under the guidelines of the Reserve Bank of India (RBI).
Recently, the RBI updated its Master Circular on pension disbursement, clarifying several key points that pensioners should be aware of.
Dearness Relief (DR) Updates
Whenever the government increases the rate of dearness relief, banks must update the pension amount and ensure the revised sum is credited to pensioners. Banks determine these revised payments based on government directives received via mail, fax, email, or relevant government websites.
Life Certificate Submission
Pensioners do not need to visit a bank to submit their life certificate. They can complete this process digitally using the Jeevan Pramaan portal, provided their Pension Sanctioning Authority is registered on the platform.
Assistance for Super Senior Citizens and Those Unwell
Banks have been directed to assist pensioners over the age of 70 or those with serious illnesses or disabilities, including vision impairment, by facilitating life certificate submission at their homes or premises.
Support for Bedridden Pensioners
For pensioners who are bedridden or unable to sign forms, banks can send an officer from the same branch to assist them at home. This must be done in the presence of two witnesses, one of whom should be a trusted bank employee.
Family Pension Guidelines
If a pensioner passes away, the family pension will be credited to the same account, provided the spouse is listed in the Pension Payment Order (PPO). There is no need to open a new account, which helps reduce paperwork during difficult times.
Handling Extra Pension Credits
If a bank mistakenly credits more pension than it should, it must consult the Pension Sanctioning Authority before recovering the excess amount. However, if the bank is at fault, the extra money should be returned to the government without burdening the pensioner.
Acknowledgment Slips for Life Certificates
Banks must provide pensioners with signed acknowledgment slips upon receiving their life certificates. If submitted digitally, a digital receipt should be issued. This ensures proper documentation and prevents confusion.
Compensation for Payment Delays
In case of delayed pension or arrears payments, banks must compensate pensioners with interest at a rate of 8% per year from the due date, with the amount credited directly to their accounts.
These updates reinforce the commitment to ensuring a smooth and hassle-free pension disbursement process for retired government employees.
