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RBI Pension Rules: Family Pension in Same Joint Account

2 April 20251 min read
BANKING & FINANCERBI Pension Rules:Family Pension inSame JointAccount2 April 2025safalsetu.com

Why in the news

RBI issued relaxed norms for paying pensions to central government pensioners, aiming at fewer delays and less paperwork for families.

Key facts

  • Joint account: a surviving spouse of a deceased central government pensioner can receive the family pension in the existing joint account, with no new account needed.
  • Acknowledgement: banks must give a signed receipt on getting a life certificate, so that pension is not held up.
  • CBS entry: submission of life certificates should be logged in the Core Banking System for live status.
  • Digital Life Certificate: a digital acknowledgement should be issued.

Significance

  • Cuts administrative hurdles for pensioner families.
  • Avoids payment delays caused by a lost or misplaced certificate.
  • Promotes digital tracking of pension processing.
  • Overall, the changes add to efficiency, transparency and convenience.

Exam angle

  • Regulator issuing the instructions: RBI.
  • Applies to: central government pensioners and their spouses.
  • Related terms: family pension, life certificate, Digital Life Certificate, CBS.

Test yourself

1. Under RBI's eased pension norms, where can a deceased central government pensioner's spouse receive family pension?

Family pension can continue in the same joint account without opening a new one.

2. What must banks issue on receiving a life certificate from a pensioner, as per RBI's new guidelines?

Banks must give a signed acknowledgement to avoid delays in pension payments.

3. Where should banks record life certificate submissions for real-time updates under RBI's pension guidelines?

Submissions should be recorded in the Core Banking System (CBS).

This topic is part of Daily Current Affairs 2 April 2025 (21 topics).

All topics of the dayDay quizApril 2025

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