The Reserve Bank of India (RBI) issued updated guidelines on April 1, 2025, clarifying the procedures related to pension payments for retired employees of the Central Government. These FAQs are issued in a question-and-answer format, focusing on pension disbursement, recovery of overpaid amounts, submission of life certificates, and the rights of pensioners.

1. Can a Joint Account be continued for family pension after the death of a pensioner?

Yes, if the Pension Payment Order (PPO) includes an authorization for family pension, the joint account held with the spouse can continue to be used for receiving the family pension. Opening a new account is not required in such cases.

2. How is the pension amount credited to the pensioner’s account by the paying branch?

The pension-paying bank credits the pension amount to the pensioner’s account based on the instructions issued by the Pension Paying Authorities.

3. Can the pension-paying bank recover the excess amount credited to the pensioner’s account?

Yes, in two cases:

• The bank must seek guidance from the Pension Sanctioning Authorities for recovering any excess amount paid.
• If the overpayment was due to a mistake by the bank, it must recover the excess amount in lump sum after notifying the pensioner.

4. Should pension-paying banks give acknowledgment while accepting Life Certificates?

Yes, due to frequent complaints of lost life certificates leading to delayed pensions, banks are now mandated to issue signed acknowledgments for all life certificates submitted. Banks are also instructed to record receipt in their CBS system and issue digital acknowledgments for certificates submitted digitally.

5. Can pensioners submit Life Certificates without visiting the branch?

Yes, pensioners can submit their Life Certificates digitally via the Jeevan Pramaan portal. Pensioners above 70 years of age, those who are differently-abled, or suffering from chronic illnesses can submit certificates from their residence with proper authorization.

6. Can a pensioner withdraw pension if they are unable to sign or provide thumb impression or be present at the bank?

Yes, RBI has issued guidelines to facilitate pension withdrawal for such cases:

• If thumb/toe impression is obtained, it must be verified by two independent witnesses, one of whom must be a responsible bank official.
• If the pensioner is unable to even provide a thumb impression, a mark on the withdrawal form can be accepted, again verified by two witnesses, including a bank official.

The responsible official must be from the same bank, preferably the same branch where the pensioner maintains the account. Banks are directed to display these instructions at their branches.

7. How is Dearness Relief (DR) at revised rates paid to pensioners?

The pension-paying branches must disburse the revised Dearness Relief based on government orders received through post, email, fax, or from the ministry’s website. Payment must be made immediately upon authorization.

8. Is a pensioner entitled to compensation for delayed credit of pension or arrears?

Yes, banks must compensate pensioners for delayed credit of pension or arrears at a fixed interest rate of 8% per annum for the delay beyond the due date. This amount must be credited to the pensioner’s account without requiring any request. This applies to all delayed payments made after October 1, 2008.

Conclusion:

These RBI-issued guidelines ensure that pensioners receive timely payments, have easier submission options for life certificates, and are protected in case of payment delays or errors. If you or someone you know is a pensioner, this information can help you secure your rightful benefits with clarity and ease. Visit your nearest bank branch to verify the implementation of these rules and ensure a smooth pension experience