Open bank account by month-end or forgo pension, govt to pensioners

Delhi government has reiterated that the beneficiaries of old age pension scheme must open accounts in banks by this month-end and has warned that those failing to do so will have to forgo their pensions.

Delhi government has reiterated that the beneficiaries of old age pension scheme must open accounts in banks by this month-end and has warned that those failing to do so will have to forgo their pensions.

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The step will enable the government to transfer funds the same day in bank accounts as against the delayed transfer in post-office accounts, currently in practice.

Called Old Age Assistance, the amount of Rs 1,000 per month for those aged between 60 and 69 years and Rs 1,500 for those 70 years and above is remitted directly into the beneficiaries' accounts every quarter.

The reason for shifting to bank accounts is slow computerisation at post-offices. "Many times, pensioners get money a month or so late. With banks, the money is transferred the same day," said Saroj Rawat, deputy director (Financial Assistance Scheme) of the Department of Social Welfare.

"This is a boon for the poor and the needy. In many areas, MLAs' men keep the post-office account books and hand over pension amount with cuts," said Ramaashray, who he goes by single name and is an activist with NGO Parivartan.