CANARA BANK, CPPC, GENERAL ADMINISTRATION WING,

HEAD OFFICE, BANGALORE

FAQ - PENSION RELATED

Payment of Pensions to Central Government and State Government Pensioners

through Centralized Pension Processing Cell (CPPC)

1. Can any pensioner draw his/her pension from Canara Bank?

Ans: Yes, a pensioner can draw his/her pension from a Canara Bank Branch if he/she
is a Central/State Govt. Pensioner or Autonomous Body, which has arrangement for
pension payment with our Bank.

2. Can the pensioner draw his/ her pension through a Canara Bank Branch?

Ans: Yes. Even the Government employees earlier drawing their pension from a
Treasury or from a Post Office will have the option to draw their pension from the
authorized Canara Bank’s Branches.

3. Where will the Pensioner open his/her pension account?

Ans: The pensioner will open his/her SB/CA account at the Branch of his/ her choice/
convenience (Home Branch) as hitherto.

4. What should a retiring person do to draw his/her pension from a Canara bank
Branch ?

Ans: The retiring person should open an account with a Canara bank Branch and
advise this Account number and Branch to the concerned Pension Sanctioning
Authority for release of his/her pension.

5. Is it necessary for the pensioner to open a separate pension account for the
purpose of crediting his/ her pension in authorized Bank?

Ans: 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.

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6. What should a retiring person, who already draws his/ her pension from a
Branch of another Bank, do to draw pension from a Canara Bank Branch?

Ans: The pensioner should open an account with a convenient Canara bank Branch and
request his/ her existing banker to send the pension papers to the concerned Govt.
authorities for onward submission to CPPC of Canara bank for pension processing.

7. Can a pensioner transfer his/ her pension account from one Branch to another
Branch of the same Bank or to the Branch of another Bank?

Ans (a) Pensioner can transfer his/ her pension account from one Branch to another
Branch of the same Bank within the same centre or at a different centre;

(b) He/She can also transfer his/ her account from one authorized Bank to another
authorized Bank at different centre and in such circumstances information about the
change of the Bank to be noted by Pension Sanctioning Authority.

8. Can a pensioner open a Joint Account with his/ her spouse ?

Ans: Yes. All Central Government Pensioners and those State Governments which
have accepted such arrangement can open Joint Account with their spouses.

9. Whether Joint Account of the pensioner with spouse can be operated either by
''Former or Survivor" or "Either or Survivor".

Ans: The Joint Account of the pensioner with spouse can be operated either by
‘‘Former or Survivor" or “Either or Survivor".

10. Whether either or survivor pension account can be continued after death of
pensioner

Ans: Yes, either or survivor pension account will be continued after death of
pensioner when the spouse is the survivor and having a joint account with the
pensioner and in whose favour an authorization for payment of family pension exists
in the Pension Payment Order (PPO).

11. Can Bank record PPO number in the passbook of pensioners/family pensioners

Ans: Yes, the functionality of printing PPO No. in the Passbook by the system enabled
along with other details on the 1st page itself.

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12. What is the procedure to be followed by the Bank Branch if the pensioner is
handicapped /incapacitated and is not in a position to be present at the paying
branch ?

Ans: If the pensioner is physically handicapped/incapacitated and unable to present

at the branch, the requirement of personal appearance is waived. In such cases the
Bank official visits the pensioner’s residence/hospital for the purpose of identification
and obtaining specimen signature or thumb/toe impression.

13. Can old, sick physically handicapped pensioner who is unable to sign, open
pension account or withdraw his/ her pension from the pension account?

Ans: A pensioner, who is old, sick or lost both his / her hands and, therefore, cannot
sign, can put any mark or thumb/ toe impression on the form for opening of pension
account. While withdrawing the pension amount he/ she can put thumb/toe
impression on the cheque/withdrawal form and it should be identified by two
independent witnesses known to the Bank one of whom should be a Bank official.

14. Can a pensioner withdraw pension from his/ her account when he/ she is not
able to sign or put thumb/toe impression or unable to be present in the bank?

Ans: In such cases, a pensioner can put any mark or impression on the cheque/
withdrawal form and may indicate to the bank as to who would withdraw pension
amount from the Bank on the basis of cheque / withdrawal form. Such a person
should be identified by two independent witnesses. The person who is actually
drawing the money from the Bank should be asked to furnish his/ her specimen
signature to the Bank.

15. Can a pensioner submit Digital Life Certificate (DLC)/Physical Life Certificate
from own residence?

Ans: Yes, as under. a) Pensioner can submit DLC from his residence, if the pensioner
is having a PC/Laptop with internet connection and Registered Biometric Device.
b) Under the Door Step Banking (DSB) for non-financial transactions, Bank has
provided the facility for pick-up of Life Certificate from the residence of pensioners
having age of more than 70 years and differently abled or infirm persons (having
medically certified chronic illness or disability) including those who are visually
impaired.

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16. Can a pensioner be allowed to operate his/ her account by the holder of Power
of Attorney?

Ans: The account is not allowed to be operated by a holder of Power of Attorney.

However, the cheque book/ATM/INB facility and acceptance of standing instructions
for transfer of funds from the account is permissible.

17. Which Office/Branch the pensioner has to approach to complete formalities

connected with commencement of his/her pension?

Ans: The pensioner will continue to complete all the pension related formalities such
as submission of mandatory undertakings for recovery of overpayment etc. at his/her
Home Branch and if requested for the grant of FMA an undertaking on prescribed
proforma every year, in case of Central Civil Pension.

18. When is the pension credited to the pensioner's account by the paying Branch?

Ans: The disbursement of pension by paying branch is on the last day of the month
except for the month of March when the pension is credited on or after the first
working day of April.

19. When does the family pension commence?

Ans: The family pension commences after the death of the pensioner. The family
pension is payable to the person indicated in the PPO on receipt of a death certificate
and application from the family member of pensioner.

20. In case of Family Pension, which office should the dependents approach?

Ans: The Home Branch through which pension had been paid to the pensioner will be
the contact point in the case of Family Pension also.

The family member of pensioner, as indicated in the PPO, has to visit the Branch from
where the pension was being released every month, with the following documents:

Death Certificate of the pensioner (original plus one photocopy) the original will be
returned after verification by the bank.

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Non remarriage certificate and non-employment certificate to be submitted. Simple

declaration to be attested by the Bank official or any gazetted officer. The Performa
will be available at the Branch.

Life Certificate of the family pensioner along with other mandatory Certificates and
an Undertaking if FMA granted to Central Civil Pensioner on prescribed proforma
(These Certificates and Undertaking are also mandatory to submit to Bank once every
year in the month of November).

Once all the documents are processed, the family pension will start from next month
and the same will be paid along with arrears if any.

21. What is the Eligibility & Procedure for granting of Fixed Medical Allowance
(FMA)?

Ans: At the time of retirement, pensioners have the option to select Fixed Medical
Allowance or Central Government Health Scheme (CGHS) Treatment Facility.

If a Central Govt. Pensioner is not a member of CGHS and opted for Fixed Medical
Allowance, the Fixed Medical Allowance may be granted to the pensioner and will be
paid on the monthly basis. In this regard pensioner has to submit an undertaking on
prescribed proforma every year along with other necessary Certificates

However if the pensioner wants to change the option or to know the other provisions/
details regarding CGHS etc., may contact his/her Department.

22. When should life certificate be submitted and what is the time limit for
submission of Life Certificate by the Senior Pensioners aged 80 years and above?

Ans: As per Govt. instructions, life certificate, duly witnessed, should be submitted
to the any Pension Paying Branch in the month of November every year.

In case of Senior Pensioners of the age of 80 years and above, Government has
advised to submit/obtain their Life Certificate w.e.f. 01st October, every year,
instead of November which would be valid till 30th November of the subsequent year.

23. Where should the pensioner submit his/her life certificate?

Ans: The pensioner can submit life certificate at any branch of the Bank either in
person or through his/her authorized representative (along with identity proof). The
receiving official will acknowledge receipt of the Life Certificate.

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24. What will happen if life certificate is not submitted in the month of November?

Ans: If life certificate is not submitted in the month of November of a year, payment
of pension for December and onwards is not being paid to the pensioner, in
accordance with the instructions of the Govt.

25. If life certificate is submitted in a subsequent month, when will pension for
November and onwards get paid?

Ans: Once the Life Certificate is updated in the Pension System, pension will be paid
along with arrears immediately on the next pension payment.

26. What is the procedure for the pension payment to NRI pensioner?

Ans: Pensioner is required to submit the following information:

Aadhaar No. is required for submitting the Digital Life Certificate through Jeevan
Pramaan:

Present Address:

Telephone Number (if any)

Mobile Number (if any) this is required for sending pension slip and other useful
message through SMS.

PAN (Income Tax) this is required for the proper calculation of TDS.

Date of birth of the spouse (with proof) this is a requirement of Government.

E-Mail address, for sending pension related information i.e. monthly pension slip etc.

27. What is Digital Life Certificate (JEEVAN PRAMAAN) and its benefits?

Ans: This is Aadhar based digital verification version of life Certificate.

Government of India, on 10th November, 2014 has launched “Jeevan Pramaan” an

“Aadhaar based Digital Life Certificate” for pensioners. This initiative is in addition
to the existing system of physical submission of Life Certificate by pensioners at the
pension disbursing branches or any branch of the Bank at his convenience.

Pensioner can visit a nearby Common Service Centre (CSC), Bank Branch or any
Government Office whose details are provided under “locate centre” on

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www.jeevanpramaan.gov.in and biometrically authenticate his / her life certificate

in real time by giving his/her Aadhaar number and other pension details related to
their pension Bank account.

After successful submission of digital life certificate, pensioner will get a SMS on
his/her mobile giving the transaction ID. Pensioner will be able to download computer
generated life certificate from www.jeevanpramaan.gov.in using this transaction ID
for their records.

Physical Life Certificate will continue to be accepted from pensioners if preferred by

him / her.

Since the entire process is primarily Aadhaar based, Digital Life Certificate submitted
by the pensioner can be authenticated only when pensioners’ accounts are seeded
with their Aadhaar Number.

28. Can a pensioner be exempted from personal appearance at the Pension Paying
Branch for submission of Life Certificate?

Ans: Yes, Pensioner, who produces a Life Certificate in the prescribed form in
Annexure-XVII signed by any person specified hereunder, is exempted from personal
appearance.

A person exercising the powers of a Magistrate under the Criminal Procedure code;

A Registrar or Sub-Registrar appointed under Indian Registration Act;

A Gazette Government servant;

A Police Officer not below the rank of Sub-Inspector in-charge of a Police Station;

A Postmaster, a departmental Sub-Postmater or an inspector of Post Offices;

A Class-I Officer of the Reserve Bank of India.

A Pensioned Officer who, before retirement, exercised the powers of a magistrate

A Justice of Peace

A Block Development Officer, Munsif, Tehsildar or Naib Tehsildar

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A Head of Village Panchayat, Gram Panchayat, Gaon Panchayat or an Executive

Committee of a Village

A Member of Parliament, of State legislatures or of legislatures of Union Territory

Governments/Administrations

Treasury Officer.

In the case of a pensioner drawing his pension through a Public Sector Bank the Life
Certificate may be signed by an officer of a Public Sector Bank.

In the case of pensioner residing abroad and drawing his pension through any other
Bank included in the Second Schedule to the Reserve Bank of India, Act, 1934, the
Life Certificate may be signed by an officer of the Bank.

Further, a pensioner not resident in India in respect of whom his duly authorized
agent produces a Life Certificate signed by a Magistrate, a Notary, a Banker or a
Diplomatic Representative of India is exempted from special appearance.

29. What is the procedure for the pension payment to NRI pensioner?

Ans: NRI Pensioner needs to submit a declaration at the pension paying branch that
he/she is an NRI. On the basis of declaration the existing account will be converted
into a Non Resident - Ordinary (NRO) account ( a type of account for NRI) and NRI
pensioner need to send a life certificate every year in the month of November to
his/her pension paying branch.

30. Pensioner who is residing abroad, how can submit the Life Certificate?

Ans: In the case of pensioner residing abroad and drawing his pension through any
bank included in the Second Schedule to the Reserve Bank of India, Act, 1934, the life
certificate may be signed by an officer of the Bank.

Further, a pensioner not resident in India in respect of whom his duly authorized
agent produces a Life Certificate signed by a Magistrate, a Notary, a Banker or a
Diplomatic Representative of India is exempted from special appearance.

31. Who is the pension sanctioning authority?

Ans: The Ministry/Department/Office where the Government servant last served is

the pension sanctioning authority. The pension fixation is made by such authority for

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the first time and thereafter the re-fixation of pay, if any, is done by the pension
paying Bank based on the instructions from the Central/ State Government
authorities.

32. Who sends the Pension Payment Orders (PPOs) to the authorized Bank?

Ans: 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.

33. When will the payment of pension commence in case of new PPOs?

Ans: The payment of pension, in respect of PPOs received at Centralized Pension

Processing Cell (CPPC) up to one week before last date of a month, will normally
commence from the same month provided the necessary pension documents are
executed by Pensioner and received along with PPOs. In case, the Pension documents
are not received by CPPC along with PPOs, the pension payment shall be
commenced/started only after obtention of pension documents from pension payment
branch (Home Branch).

34. When will the arrears get paid?

Ans: Payment of arrears, on account of revision of pension etc., received at

Centralized Pension Processing Cell (CPPC) of the Bank shall be paid in the subsequent
month along with monthly pension payment.

35. How the payment of Dearness Relief at revised rate is to be paid to the
pensioners?

Ans: Whenever any additional relief on pension/family pension is sanctioned by the

Government, the same is intimated to the agency banks for issuing suitable
instructions to their pension paying branches for payment of relief at the revised rates
to the pensioners without any delay. The orders issued by Govt. Departments are also
hosted on their websites and banks have been advised to watch the latest instructions
on the website and act accordingly without waiting for any further orders from RBI in
this regard.

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36. Where can a pensioner get information about the changes in the pension /
Dearness Relief or any pension related issue?

Ans: The pensioner can visit the Official Website of the concerned Government
Department as also Reserve Bank of India Website (www.rbi.org.in) to get the
information about pension related issues.

37. Can pensioners get pension slips?

Ans: Pension slip can be obtained by the pensioner from any pension paying branch.

38. How to get SMS for the details of monthly pension?

Ans: To get SMS Pensioner has to visit Pension Paying Branch (Home Branch) with
request to upload his/her Mobile number in the Pension Application Software/SB
Account.

Pensioner can get the details of monthly pension such as Basic Pension, D.A., Medical
Allowance, Other Allowances, Commutation, Income Tax, Net Pension credited and
the date of credit along with amount of commutation and gratuity paid through SMS
from Canara Bank on regular basis.

39. If the pensioner has a query or requires clarification on the amount of pension
paid, what should he/she do?

Ans: The pensioner should approach any Pension Paying Branch for remedy/resolution
and help. The Branch will attend to it, with on-line help from the CPPC, if needed.

40. if the pensioner wants details of pension paid during a financial year or
Pension Payment Slip, whom should he/she approach?

The details for a year would be provided to the Pensioner by the Pension Paying
Branch.

41. What types of pensions are handled by Centralized Pension Processing Cell
(CPPC)?

Ans: All type of pension to pensioners of Central Govt. and State Govt. (Karnataka
State/Goa State/MP State) etc., are handled by CPPC.

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42. Can the pension paying Bank recover the excess amount credited to the
pensioner’s account?

Ans: Yes. The pension paying Branch before commencement of pension obtains an
undertaking letter from the pensioner in the prescribed form for this purpose and
therefore, can recover the excess payment made to the pensioner's account due to
delay in receipt of any material information or due to any bonafide error. The Bank
has also right to recover the excess amount of pension credited to the deceased
pensioner’s account from his/ her legal heirs/nominees.

43. Whether Income Tax deducted at source (TDS) on Pension

Ans: Yes. As per Income Tax Act, TDS is applicable on pension to individual male or
female & senior citizen except certain categories of disability pension (i.e. disability
element and service element of a disabled officer of the Indian Armed forces) which
are exempted.

44. Who is responsible for deduction of Income Tax at source from pension
payment?

Ans: The pension paying Bank is responsible for deduction of Income Tax from pension
amount in accordance with the rates prescribed by the Income Tax authorities from
time to time. While deducting such tax from the pension amount, the paying Bank, on
the basis of declaration submitted by the pensioner, will also allow deductions on
account of relief to the pensioner available under the Income Tax Act. The paying
Branch will also issue a certificate of tax deduction on the prescribed form to
pensioner in the month of April each year.

45. Where should a pensioner submit details of investment for claiming relief
under Income Tax Act?

Ans: The pensioner should submit the details of investment to Pension Paying Branch.

In this regard, to avoid possibility of excess deduction of TDS, It is advisable that

pensioner should submit his/her investment & other details related to claiming relief
under Income Tax Act well in advance i.e. at the beginning of Financial Year.
Accordingly the Branch will arrange for deduction of Income Tax and issue a
certificate containing details of Income Tax deducted from pension by the Pension
Paying Branch.

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