New Delhi: The Reserve Bank of India (RBI) has told banks to continue joint account for spouse’s pension after the death of a pensioner.
RBI has updated its Frequently Asked Questions (FAQ) ( April 01, 2025) for Payment of Pension to Government Pensioners, detailing 8 points on Payment of Pension to Government Pensioners.
RBI said that the banks should not insist on opening of a new account in case of Central Government pensioner if the spouse in whose favour an authorization for family pension exists in the Pension Payment Order (PPO) is the survivor. The family pension should be credited to the existing account without opening a new account by the family pensioner for this purpose.
The pension paying banks credit the pension amount in the accounts of the pensioners based on the instructions given by the Pension Paying Authorities.
Among other FAQs, RBI also advised laid clear guidelines on the payment of Dearness Relief at revised rate to the pensioners.
RBI said the pension paying agency banks have to revise the Dearness Relief based on the copies of government orders provided by government to them through post, fax, e-mails or by accessing the information from the website of the concerned governments, and authorize their pension paying branches to make payments to the pensioners immediately.
The central bank also said that pensioner is entitled for any compensation from the agency banks for delayed credit of pension/ arrears of pension.
RBI said that the pension paying banks should compensate the pensioner for delay in crediting pension/ arrears thereof at a fixed interest rate of 8 per cent per annum for the delay after the due date of payment. This compensation should be credited to the pensioner’s account automatically without any claim from the pensioner on the same day when the bank affords credit for revised pension/ pension arrears, in respect of all delayed pension payments made since October 1, 2008.
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