Can the Pension Account be transferred to another bank branch or branch?

Business

oi-Staff

By Super

Published: Monday, February 24, 2014, 11:34 [IST]

Yes, for individuals entitled to receive pension amount for their employment with either the state or central government can transfer or are allowed to transfer their pension account from bank branch to another of the same centre or in a different .

If the pensioner wishes to transfer his pension account from one authorized bank to another, he is also allowed to do so once in a given year.

Also transfer of pension account from one authorized bank to another in a different centre is also permitted by the authority.

In this case, when the pension payment order or the PPO is transferred from the old bank branch or bank (transferor) to a new bank branch or bank (transferee), for 3 months time, pensioner shall receive the pension amount on the basis of the photocopy of the PPO order with the new bank or bank branch. At the same time, the bank or bank branch where the account of the pensioner is transferred ensures that within this time, pensioner provides all the necessary documents.

Some other points in relation to pension payment

For the initiation of pension payment, in a general case, individual is required to be present at the bank branch for the purpose of identification along with some essential documents as the bank takes the specimen signatures or thumb impression of the concerned. Nonetheless, in case the pensioner is incapacitated or handicapped, bank officials visits the concerned for obtaining his specimen signatures or thumb or toe impression.

Compulsorily pensioner needs to furnish as life certificate/ employment certificate or a non-employment certificate in November every year. In the other case, when the pensioner fails to obtain the certificate due to serious illness, pensioner may be visited by the officials of the department for recording his or her life certificate.

Pensioner is allowed to keep half part of the pension payment order for recording and in case the dearness relief or basic pension amount is revised, banks record the details by summoning the half portion of the PPO i.e. held by the pensioner.

Also, the account of the pensioner cannot be operated by an individual holding the Power of Attorney. However, transfer from the account through standing instructions and cheque facility is allowed.

Information courtesy: RBI Website