Scheme for Payment of Pension to Government Pensioners  by Authorised Banks 
Reserve Bank of India (the Bank) monitors disbursement of  pension by its agency banks in respect of all Central Government Departments  (except the Department of Post) and certain State Governments. It has been  receiving several queries/ complaints from pensioners in regard to fixation,  calculation and payment of pension including revision of pension/ Dearness  Relief from time to time, transfer of pension account from one bank branch to  another, etc. We have analysed the queries/ complaints, rights and duties of  pensioners and put the same in the form of answers to these Frequently Asked  Questions. It is hoped that these will cover most of the queries/ doubts in the  minds of pensioners.
1. Can the pensioner draw his/ her pension through a  bank branch? 
Yes. Even the Government employees earlier drawing their  pension from a treasury or from a post office have the option to draw their  pension from the authorized bank’s branches.
2. Who is the pension sanctioning authority? 
The Ministry/ Department /Office where the Government servant  last served is the pension sanctioning authority. The pension fixation is made  by such authority for the first time and thereafter the refixation of pay, if  any, is done by the pension paying bank based on the instructions from the  concerned Central/ State Government authority.
3. Is it necessary for the pensioner to open a separate  pension account for the purpose of crediting his/ her pension in authorized  bank? 
The pensioner is not required to open a separate pension  account. The pension can be credited to his/her existing savings/ current  account maintained with the branch selected by the pensioner.
4. Can a pensioner open a Joint Account with his/ her  spouse? 
Yes. All pensioners of the Central Government Pensioners and  those State Governments which have accepted such arrangement can open Joint  Account with their spouses.
5. Whether Joint Account of the pensioner with spouse  can be operated either by ''Former or Survivor" or "Either or Survivor". 
The Joint Account of the pensioner with spouse can be operated  either as ‘‘Former or Survivor" or “Either or Survivor".
6. What is the minimum balance required to be  maintained in the pension account maintained with the banks? 
RBI has not stipulated any minimum balance to be maintained in  pension accounts by the pensioners. Individual banks have framed their own rules  in this regard. However, some banks have also permitted zero balance in the  pensioners’ accounts.
7. Who sends the Pension Payment Orders (PPOs) to the  authorized bank branch? 
The concerned pension paying authorities in the Ministries  /Departments/ State Governments forward the PPOs to the bank branches wherefrom  the pensioner desires to draw his/her pension.
8. When is the pension credited to the pensioner's  account by the paying branch? 
The disbursement of pension by the paying branch is spread over  the last four working days of the month depending on the convenience of the  pension paying branch except for the month of March when the pension is credited  on or after the first working day of April.
9. Can a pensioner transfer his/ her pension account  from one branch to another branch of the same bank or to the branch of another  bank? 
(a) Pensioner can transfer his/ her pension account from one  branch to another branch of the same bank within the same centre or at a  different centre;
(b) He/ She can transfer his/ her account from one authorized  bank to another within the same centre (such transfers to be allowed only once  in a year);
(c) He/ She can also transfer his/ her account from one  authorized bank to another authorized bank at a different centre.
10. What is the procedure for payment of pension in the  case of the transfer of PPO to another branch or bank, as the case may be? 
Pension will be paid for three months on the basis of the  photocopy of the pensioner’s PPO at the transferee (new) branch from the date of  the last payment made at the transferor (old) branch. Both the branches (old and  new) are required to ensure that all the required documents are received by the  transferee branch within these three months.
11. Is it necessary for the pensioner to be present at  the branch of the bank along with documents for the purpose of identification  before commencement of pension? 
Yes. Before the commencement of pension, a pensioner has to be  present at the paying branch for the purpose of identification. The paying  branch shall obtain the specimen signatures or the thumb/toe impression from the  pensioner.
12. What is the procedure to be followed by the bank  branch if the pensioner is handicapped /incapacitated and is not in a position  to be present at the paying branch? 
If the pensioner is physically handicapped/incapacitated and  unable to be present at the branch, the requirement of personal appearance is  waived. In such cases, the bank official visits the pensioner’s  residence/hospital for the purpose of identification and obtaining specimen  signature or thumb/toe impression.
13. Has the pensioner got right to retain half portion  of the PPO for record and to get it updated from paying branch whenever there is  a change in the quantum of pension due to revision in basic pension, dearness  relief, etc.? 
Yes. The pensioner has right to retain half portion of the PPO  for record and whenever there is a revision in the basic pension/Dearness  Relief (DR), etc. the paying branch has to call for the  pensioner's half of the PPO and record thereon the changes according to  government orders/notifications and return the same to the pensioner.
14. Whether the paying branch has to maintain a  detailed record of pension payments made by it in the prescribed form? 
Yes. The pension paying branch is required to maintain a  detailed record of pension payments made by it from time to time in the  prescribed form duly authenticated by the authorized officer.
15. Can the pension paying bank recover the excess  amount credited to the pensioner’s account? 
Yes. The paying branch before commencement of pension obtains  an undertaking from the pensioner in the prescribed form for this purpose and,  therefore, can recover the excess payment made to the pensioner's account due to  delay in receipt of any material information or due to any bonafide error. The  bank also has the right to recover the excess amount of pension credited to the  deceased pensioner’s account from his/her legal heirs/nominees.
16. Is it compulsory for a pensioner to furnish a Life  Certificate/Non-Employment Certificate or Employment Certificate to the bank in  the month of November?
Yes. The pensioner is required to furnish a Life  Certificate/Non – Employment Certificate or Employment Certificate to the bank  in the month of November. However, in case a pensioner is unable to obtain a  Life Certificate from an authorized bank officer on account of serious illness /  incapacitation, bank official will visit his/her residence/ hospital for the  purpose of recording the life certificate.
17. Can a pensioner be allowed to operate his/ her  account by the holder of Power of Attorney? 
The account is not allowed to be operated by a  holder of Power of Attorney. However, the cheque book facility and acceptance of  standing instructions for transfer of funds from the account is permissible.
18. Who is responsible for deduction of Income Tax at  source from pension payment? 
The pension paying bank is responsible for deduction of Income  Tax from pension amount in accordance with the rates prescribed by the Income  Tax authorities from time to time. While deducting such tax from the pension  amount, the paying bank will also allow deductions on account of relief to the  pensioner available under the Income Tax Act. The paying branch, in April each  year, will also issue to the pensioner a certificate of tax deduction as per the  prescribed form. If the pensioner is not liable to pay Income Tax, he should  furnish to the pension paying branch, a declaration to that effect in the  prescribed form (15 H).
19. Can old, sick physically handicapped pensioner who  is unable to sign, open pension account or withdraw his/ her pension from the  pension account? 
A pensioner, who is old, sick or lost both his/her hands and,  therefore, cannot sign, can put any mark or thumb/ toe impression on the form  for opening of pension account. While withdrawing the pension amount he/she can  put thumb/toe impression on the cheque/withdrawal form and it should be  identified by two independent witnesses known to the bank one of whom should be  a bank official.
20. Can a pensioner withdraw pension from his/ her  account when he/she is not able to sign or put thumb/toe impression or unable to  be present in the bank? 
In such cases, a pensioner can put any mark or impression on  the cheque/ withdrawal form and may indicate to the bank as to who would  withdraw pension amount from the bank on the basis of cheque/withdrawal form.  Such a person should be identified by two independent witnesses. The person who  is actually drawing the money from the bank should be asked to furnish his/her  specimen signature to the bank.
21. When does the family pension commence? 
The family pension commences after the death of the pensioner.  The family pension is payable to the person indicated in the PPO on receipt of a  death certificate and application from the nominee.
22. How the payment of Dearness Relief at revised rate  is to be paid to the pensioners? 
Whenever any additional relief on pension/family pension is  sanctioned by the Government, the same is intimated to the agency banks for  issuing suitable instructions to their pension paying branches for payment of  relief at the revised rates to the pensioners without any delay. The orders  issued by Government Departments are also hosted on their websites and banks  have been advised to watch the latest instructions on the website and act  accordingly without waiting for any further orders from RBI in this regard.
23. Can pensioners get pension slips? 
Yes. As decided by the Central Government (Civil, Defence &  Railways), pension paying banks have been advised to issue pension slips to the  pensioners in prescribed form when the pension is paid for the first time and  thereafter whenever there is a change in quantum of pension due to revision in  basic pension or revision in Dearness Relief.
24. Which authority the pensioner should approach for  redressal of his/ her grievances? 
A pensioner can initially approach the concerned Branch Manager  and, thereafter, the Head Office of the concerned bank for redressal of his/her  complaint. They can also approach the Banking Ombudsman of the concerned State  in terms of Banking Ombudsman Scheme 2006 of the Reserve Bank of India (details  available at the Bank’s website 
www.rbi.org.in) This is applicable only in respect of  complaints relating to services rendered by banks. For other issues the  complainant will have to approach the respective pension paying authority.
25. Where can a pensioner get information about the  changes in the pension/ Dearness Relief or any pension related issue? 
The pensioner can visit the Official Website of the concerned  Government Department as also Reserve Bank of India Website (
www.rbi.org.in) to get the  information about pension related issues.
26.  Whether a pensioner is entitled for any  compensation from the agency banks for delayed credit of pension/ arrears of  pension? 
Yes. A Pensioner is entitled for compensation for delayed  credit of pension/arrears thereof at the fixed rate of 8% and the same would be  credited to the pensioner's account automatically by the bank on the same day  when the bank affords delayed credit of such pension / arrears etc without any  claim from the pensioner.
These FAQs are issued by the Reserve Bank of India for information and  general guidance purposes only. The Bank will not be held responsible for  actions taken and/or decisions made on the basis of the same. For clarifications  or interpretations, if any, the readers are requested to be guided by the  relevant circulars and notifications issued from time to time by the Bank and  the Government
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