Nowadays, a pensioner can draw pension from banks near to his/her home. But, the branches have to be authorized. Some other important and noteworthy points as far as pensions are concerned should be as noted below:
If a pensioner already maintains a savings account or a current account in a authorised bank then the pensioner will get the pension in that account only. There is no need to open a separate pension account for the purpose of receiving pension.
Joint Pension Account
A pensioner can open a joint account with their spouses. The account can be operated as "Former or Survivor" or as "Either or Survivor." The family of the pensioner will avail pension from that account on the demise of the pensioner. The name of the family member should be present in the Pension Payment Order (PPO).
Minimum balance in the account
The Reserve Bank of India (RBI) has not specified any minimum balance to be kept in the account of the pensioner. However, individual banks have their own rules and some banks even permit zero balance account.
Credit of pension
The pension is credited on the last four working days of every month. However, in the month of March pension is not credited on the last four working days and instead it is paid on the first working day of April.
Transfer of account
A pensioner can transfer the account
1. From one branch to another of the same bank.
2. From one bank to another authorised bank within the same centre (allowed only once a year).
3. From one bank to another authorised bank at a different centre.
Tax deducted at Source (TDS)
The bank from where the pensioner draws pension deducts income tax in accordance with the rates prescribed by the Income Tax authorities.
Know more on Income Tax slabs for the FY15-15 here.
Retirement is the time when you start enjoying life with your near and dear ones. Your pension fund helps you to maintain the comforts of life even if you stop working.