From dearness allowance to life certificate - retired employees should know these 8 important things.

Here we will learn about 8 important things including pension payment process, dearness allowance and life certificate, as per the new guidelines of RBI. The purpose of these changes by RBI is to provide convenience and security to the pensioners so that they can get pension payment without any problem.

If you are a retired government employee and you get pension, then it is very important for you to know that the Reserve Bank of India (RBI) has made some changes in the pension distribution process. These changes are even more convenient for pensioners. Recently new guidelines have been given to the bank regarding issues like delay in pension, excess payment or submission of life certificate. Here we have told you about these changes one by one....

1) Revision in the rate of dearness allowance: If the government increases the rate of dearness allowance, then banks have been directed to immediately authorize their pension distributing branches to make payments to pensioners according to this change. According to the Reserve Bank of India (RBI), banks will have to receive the government's orders by mail, fax or email, or get information from the official website of the concerned government authorities, to determine the payment of updated dearness allowance.

2) Option to submit life certificate: Pensioners can submit their life certificate through the 'Jeevan Pramaan' platform, which will not have to go to the bank branch. Along with this, RBI has directed the banks to provide the facility of depositing life certificate at their home to super senior citizens (above 70 years) and persons affected by serious illness or disability.

3) After the death of the pensioner: If a pensioner dies, the family pension will be credited to the same account and not to a new account. If the pensioner's wife/husband is the beneficiary of the family pension, they need not open a new account.

4) When is pension credited: Banks have to credit pension as per the instructions given by the pension paying authorities.

5) Excess payment: If excess pension is credited to a pension account by mistake, then RBI has asked the banks to take instructions from the pension related authorities on how to withdraw the excess amount. If this mistake is made by the bank, then that excess amount should be immediately refunded to the government, so that there is no delay in withdrawing the money from the pensioners.

6) Acknowledgement slip: RBI has instructed the banks to give a signed acknowledgement slip to the pensioners on receiving their life certificate. Apart from this, banks can also provide digital acknowledgement slips for pensioners who provide digital life certificates.

7) Pension delay: If there is any delay in the payment of pension or arrears, banks will have to pay pensioners at the rate of 8% per annum, starting from the due date of payment. This will be automatically deposited in the pensioner's account as compensation and pensioners will not have to make any claim for it.

8) Pension payment to sick or disabled pensioners: If any pensioner is sick or disabled and cannot go to the bank branch and sign the document, then the bank has the right to appoint one of its employees to mark the cheque or form, and for this two witnesses are required. The purpose of all these changes is to provide convenience and security to the pensioners so that they can get pension payment without any problem.