Withdrawal of pension by sick, disabled pensioners

Banks are advised to provide a clearly identifiable dedicated counter or a counter that prioritises senior citizens and people with disabilities, including the visually impaired, according to the Reserve Bank of India (RBI).

Withdrawal of pension by old, sick, disabled and incapacitated pensioners, according to RBI FAQ:


With an aim to ease the difficulty faced by pensioners when withdrawing pension, banks, agency banks have categorised such pensioners as under:


“1. Pensioner who is too ill to sign a cheque / unable to be physically present in the bank.

2. Pensioner who is not only unable to be physically present in the bank but also not even able to put his/her thumb impression on the cheque/ withdrawal form due to certain physical defect / incapacity.”

Banks are asked to follow the approach outlined below to enable such elderly, sick, or handicapped pensioners to run their accounts:

• Wherever thumb or toe impression of the old/sick pensioner is obtained, it should be identified by two independent witnesses known to the bank, one of whom should be a responsible bank official.
• Where the pensioner cannot even put his/her thumb/ toe impression and also would not be able to be physically present in the bank, a mark can be obtained on the cheque/withdrawal form, which should be identified by two independent witnesses, one of whom should be a responsible bank official.

According to SBI website, “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.”

Penalty for delayed credit of pension


According to the RBI website, “pension paying banks should compensate the pensioner for delay in crediting pension/ arrears thereof at a fixed interest rate of 8 per cent per annum for the delay after the due date of payment. This compensation should be credited to the pensioner’s account automatically without any claim from the pensioner on the same day when the bank affords credit for revised pension/ pension arrears, in respect of all delayed pension payments made since October 1, 2008.”

Automatic conversion of status of accounts


RBI has recommended banks to convert completely KYC compliant accounts to ‘Senior Citizen Accounts’ depending on the date of birth available in the bank’s records.

Door Step Banking


For senior citizens over the age of 70, differently-abled or infirm, including those who are visually impaired, banks are advised to make a concerted effort to provide basic banking services, such as pick-up of cash and instruments against receipt, delivery of cash against account withdrawal, delivery of demand draughts, and submission of Know Your Customer (KYC) documents.

Can a pensioner withdraw pension from an account when they are not able to sign or unable to be present in the bank?


In such instances, a pensioner can make any mark or impression on the cheque/withdrawal form and tell the bank who will take the pension funds from the bank using the cheque/withdrawal form. Two independent witnesses should be able to identify such a person. The person who is actually withdrawing money from the bank should be required to provide the bank with a specimen signature, as per RBI FAQ.

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