Who is the pension sanctioning authority?
The last ministry or department or office where the pensioner served is authorized to sanction the pension amount. At first, the concerned dept. or ministry or office fixes the pension amount for the pensioner and thereafter any refixation in pension payment amount is executed by the bank paying the pension amount.
Can banks be approached for drawing pension amount?
Yes, designated bank branches can even by approached by pensioners who earlier drew their pension from a post office or a treasury for pension payment.
Do pensioner need to open and maintain a separate pension account for credit of pension?
No, separate account is not required to be maintained for the purpose and pension amount can be credited in the existing current or savings account held by the pensioner in the authorized bank branch. Also, all central government pensioners and few state government pensioners are allowed to maintain joint account with their spouse and the account can be operated as 'Either or Survior' or ‘Former or Survivor'.
What is the minimum balance requirement in case of pension account with the banks?
Banks on their own discretion have stipulated rules in this regard and some of the banks are also allowing zero balance pension account.
When is the pension amount credited into the account of the pensioner?
The pension amount in the pensioner's account is credited by the authorized bank branch at any time during the last 4 working days of the month based on the convenience of the bank branch. However, in March, the amount is credited on or after the 1st working day of April.
Is pensioners presence carrying the requisite documents essential before the commencement of pension?
Before the initiation of pension payment, the paying branch requires the pensioner to be present at the branch with the required documents for identification.
What is the compensation amount paid by the pension paying branch in case of delayed payment?
In case the authorized bank branch delays in pension payment, a compensation @ 8% is automatically credited in the pensioner's bank account on the day when the bank credits delayed pension or arrears.
Information courtesy: RBI website