Para 7.19 — CAM
Original Rule Text
7.19 PAYMENT OF PENSION TO N.R.I. PENSIONERS
(i) The Authorized Bank may credit the pension amount of non-resident to a nonresident (ordinary) account opened/maintained as per provision of the Exchange Control. The amount of pension of a pensioner who has become non-resident may be credited to the said account after ensuring the personal identification and other requirements as stipulated under the Pension Scheme Booklet. In case of NRI pensioner/family pensioners who are unable to come to India for personal identification may be allowed pension/family pension on the basis of a certificate to be issued by an authorized official of the Indian Embassy/High Commission of India or Consul of India Consulate in the country where the pensioner is residing. This certificate is to be issued on verification of Pensioner/Family Pensioner on the basis of photograph pasted in the PPO or on the basis of photograph pasted on the Passport or any other such document.
(ii) In case of the existing accounts, the pensioner should intimate the fact that he has become Non-Resident Indian to the Home Branch in India and on receipt of the same the Home Branch in India should convert the account of the pensioner to NonResident Ordinary (NRO) Account.
(iii) The pensioner has to furnish the life certificate issued by an authorized official of the Embassy High Commission of India or Consul of Indian Consulates or a Notary Public or an Officer of an Indian Authorized Bank attached to its branch in the country where the pensioner is residing, once in a year, in November and in October in case the pensioner is above than 80 years of age.
(iv) The pensioner has to furnish other certificates viz. non-employment/re-employment certificate, Remarriage /Marriage certificate.
(v) The CPPCs will credit the amount of pension due every month to the Non-resident Ordinary Account of the pensioner.
(vi) Withdrawals from the Non-Resident Ordinary Accounts will be governed by the instructions contained in the Exchange Control Manual and the Home Branch should allow the withdrawal accordingly.
(vii) Pension credited to the Pensioner's Non-Resident (Ordinary) Account may be remitted by the bank to the Pensioners outside India, in case the Non-Resident Pensioner so desires, by debit to his NR (O) Accounts either by direct remittance or by credit in his NR (E) Accounts.
(viii) In cases where Non-Resident Indian pensioners are unable to furnish the prescribed life certificate, the CPPC should return PPOs of such pensioners to pension sanctioning authority through CPAO for arranging future payments to them.
What This Means
This paragraph covers how pension is paid to Non-Resident Indian (NRI) pensioners. The authorized bank credits pension to a Non-Resident Ordinary (NRO) account maintained under Exchange Control provisions. NRI pensioners who cannot visit India for personal identification can get a certificate from the Indian Embassy, High Commission, or Consulate in their country of residence. They must submit an annual life certificate (in November, or October if above 80 years) and other certificates like non-employment and remarriage declarations. The pension can be remitted abroad from the NRO account if the pensioner wishes. If an NRI pensioner fails to furnish the life certificate, the PPO is returned through CPAO. A change in citizenship does not affect pension entitlement.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1NRI pension is credited to a Non-Resident Ordinary (NRO) account
- 2Personal identification for NRIs can be done via Indian Embassy/High Commission/Consulate certificate
- 3Annual life certificate due in November (October for 80+ years pensioners)
- 4Pension can be remitted abroad from NRO account per Exchange Control Manual rules
- 5Change of citizenship does not affect pension entitlement
Practical Example
A retired Central Government officer settles in Toronto, Canada after retirement. He informs his home branch in India, which converts his account to an NRO account. Each November, he visits the Indian Consulate in Toronto to get a life certificate verified against his PPO photograph. The CPPC credits his monthly pension to the NRO account, and his bank remits the amount to his Canadian account as per Exchange Control guidelines.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can an NRI pensioner receive pension in a foreign currency account directly?▼
What if an NRI pensioner takes citizenship of another country?▼
What happens if the NRI pensioner cannot provide the annual life certificate?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.