When Is Pension Credited To Pensioner's Account By The Paying Branch?

Several retired folk depend on pension for sustaining themselves. The question that is therefore often asked is: When is pension going to be credited by the bank? The pension paying banks credit the pension amount in the accounts of the pensioners based on the instructions given by the Pension Paying Authorities. Generally, it is by the end of the month. Even then, it would be better to check with the authorities when the instruction is given.

Can the pension paying bank recover excess amount credited pensioner?

Agency banks are requested to seek guidance from respective Pension Sanctioning Authorities regarding the process to be followed for recovery of excess pension paid to the pensioners, if any.

Where excess pension payment has arisen on account of mistakes committed by the bank, the amount paid in excess should be refunded to the Government in lump-sum immediately after detection of the same and without waiting for recovery of any amount from the pensioners.

Should acknowledgement be given by pension paying banks while accepting Life Certificates from pensioners?

There have been complaints that life certificates submitted over the counter of pension paying branches are misplaced causing delay in payment of monthly pensions. In order to alleviate the hardships faced by pensioners, agency banks were instructed to mandatorily issue duly signed acknowledgements. They were also requested to consider entering the receipt of life certificates in their CBS and issue a system generated acknowledgement which would serve the twin purpose of acknowledgement as well as real time updation of records.

Who is responsible for deduction of Income Tax at source from pension payment?

The pension paying bank is responsible for deduction of Income Tax from pension amount in accordance with the rates prescribed by the Income Tax authorities from time to time. If tax has been deducted and one does not have taxable income, it is better to file income tax returns and claim the money back.