savings account into a pension account, or they may open a new pension account. When an employee retires for any state or central government organization, they will receive benefit amounts and a monthly pension in the account mentioned by them. For that you have two option: open a new pension account or, you convert the existing salary account into a pension account. The difficulty of keeping several accounts can be avoided by converting your current savings account into a pension account. If a retiree already has a current or savings account, they are not obliged to create a second pension account with a bank. Each month, the present savings account may receive credit for your pension. According to the SBI FAQs web page, “The pensioner is not required to open a separate pension account. The pension can be credited to his or her existing savings/current account maintained with any Branch of the Bank selected by the pensioner.” Also, “The concerned pension paying/sanctioning authorities of the Ministries/ Departments/State Governments forward the PPOs to the Bank where from the pensioner desires to draw his/her pension.”
You Might Also Like:Up to 9.1% FD interest rate: These four banks have hiked senior citizen FD interest rates in August
Recording PPO in the bank’s passbook According to the IDFC FIRST website, “The RBI has notified pension-paying banks to record the PPO number in the pensioners’ bank accounts and family pensioners to whom the pension is credited. This relieves pensioners of many challenges that can arise in case of the loss of the original PPO.”Important FAQs related to pension, according to the SBI website.When will the payment of pension commence in case of new PPOs? The payment of pension, in respect
Read more on economictimes.indiatimes.com