RBI Guidelines For Sick, Disabled Pensioners On Withdrawal of Pension from Bank Account

RBI Guidelines For Sick, Disabled Pensioners On Withdrawal of Pension from Bank Account

Reserve Bank of India issues strict instructions to all the nationalized banks in response to payment of pension for old/sick/disabled/incapacitated pensioners. Even though a system has been put aside the bank, sick and disabled pensioners face problems when it comes to withdrawal pension or family pension from the banks. To ease out seniors, bank and agency banks classify them in categories like,

  1. Pensioners who are too ill to sign a cheque or can’t be present physically to withdraw money from the bank account. But they can put their thumb impression on the withdrawal form
  2. Pensioners who can’t be present physically in the bank and also not able to put thumb impression on withdrawal form due to physical defect or incapacity

Also Read: RBI’s New Policy Allow Cash Withdrawal Without ATM Cards

In these cases, banks are requested to follow the given below approach to enable sick, or handicapped pensioners to take their money out,

  1. When a toe or thumb impression of the sick/old pensioner is obtained, it must be verified by two independent witnesses that are known to the bank. Out of the two, one of them must be a responsible bank official.

       2. In case, the pensioner can’t put the toe/thumb impression & can’t be physically present, a              mark is obtained on the withdrawal form, which needs to be identified by 2 independent                witnesses. One of whom needs to be a responsible bank official.

Penalty For Delayed Credit Of Pension

As per the RBI site, ‘pension paying bank must compensate the old/sick pensioner for delaying in crediting pension at a fixed rate of 8% per annum after the payment due date. It should be credited to the pensioner’s account automatically with no claim from the pensioner when the bank afford credit for revised pension as of October 1, 2008’

Automatic Conversion of Account Status

RBI instructs banks to convert KYC compliant accounts to Senior Citizen accounts as per their DOB mentioned in the bank records.

Also Read: What is RBI’s Digital Rupee And How It Will Work In India?

Door Step Banking Services

For old/sick over the age of 70, banks are advised to make efforts in providing basic banking services like instruments against receipt, pick-up of cash, delivery of demand draughts, delivery of cash against account withdrawal, and submission of KYC documents.

The agency banks are advised to instruct their branches to showcase guidelines issued by RBI regarding the pension withdrawal by the sick or disabled pensioners on the notice board. Moreover, they are requested to sensitize staff members in this matter.

Refer to read FAQs on pension disbursement.

Further, go through this: 

RBI Circular-DGBA.GBD.NO.-1/31.05.001/2017-18 pdf. 

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