Payment of pension through Authorized Banks-Credit of pension to Joint bank account operated by a pensioner with his/her spouse.

No. CPAO/Tech/Amendments/Sch.Book/2005-06/
Government of India
Ministry of Finance
Department of Expenditure

Trikoot-II, Bhikaji Cama Place,
New Delhi.



Sub:- Payment of pension through Authorized Banks-Credit of pension to Joint bank account operated by a pensioner with his/her spouse.
Under the facility of disbursement of pension through authorized Banks available to pensioners, a pensioner is entitled to receive his/her pension by getting it credited to a  saving/current bank account operated individually by him/her. Paras 4.1, 4.2 and 12.9 of the “Scheme for Payment of Pension for Central Government Civil Pensioners Through Authorized  Banks” outline the present procedure for credit of pension to Bank Account of the pensioner. However, operation of a joint account is not permitted under the existing scheme.
2. The matter whether pensioners should be given an option to receive pension by getting it credited to their saving or current bank accounts operated jointly with their spouse, has been under consideration. It has now been decided to permit credit of pension also to a joint account operated by pensioner with his/her spouse in whose favour an authorization for family pension exists in the Pension Payment Order (PPO). The joint account of the pensioner with the spouse could be operated either by ‘Former or Survivor’ or ‘Either or Survivor’ basis subject to the following terms and conditions:
(a) Once pension has been credited to a pensioner’s bank account, the liability of the Government/Bank ceases. No further liability arises, even if the spouse wrongly draws the amount.
(b) As pension is payable only during the life of a pensioner, his/her death shall be intimated to the bank at the earliest and in any case within one month of the demise, so that the bank does not continue crediting monthly pension to the joint account with the spouse, after the death of the pensioner. If, however, any amount has been wrongly credited to the joint account, it shall be recoverable from the joint account and/or any other account held by the pensioner/spouse either individually or jointly. The legal heirs, successors, executors etc. shall also be liable to refund any amount, which has been wrongly credited to the joint account.
(c) Payment of Arrears of Pension (Nomination) Rules 1983 would continue to be applicable to a Joint Account with the pensioner’s spouse. This implies that if there is an ‘accepted nomination’ in accordance with Rules 5 and 6 of these Rules, arrears mentioned in the Rules shall be payable to the nominee.
3. Existing pensioners desiring to get their pension credited to a joint account as indicated above are required to submit an application to the branch bank, from where they are presently drawing pension in the enclosed form. This would also be signed by the pensioner’s spouse in token of having accepted the terms and conditions laid down in this Office Memorandum. These instructions are also applicable to the Govt. servants who will be retiring after the issue of this Office Memorandum.
(4) The existing Scheme shall stand modified to the extent indicated above Formal correction to the Scheme will be issued in due course by the Central Pension Accounting Office.
(5) All Ministries/Departments and all Authorized Banks are requested to give publicity to the Office Memorandum so that pensioners may avail of this benefit.

(Vandana Sharma)
Chief Controller (Pensions)

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