Government Business

Payment of Pension

Allahabad Bank is one of the Agency Banks for Payment of Pension and disburses Pension to Civil, Defence, Telecom, Railway, FCI and State Govt. Pensioners as also CMPF Pensioners through 2300 branches. Allahabad Bank proposes to set up Centralised Pension Processing Centre (CPPC) for hassle free and accurate processing & payment of Pension as well as redressal of grievances of Pensioners from one single point.

Pension Authorized Branches

  • Government employees have the option to draw their pension from the Authorized Bank’s branches.
  • The Ministry/Department /Office where the Government Servant last served is the Pension Sanctioning Authority. The pension fixation is made by such authority for the first time and thereafter the refixation of pay ,if any, is done by pension paying bank based on the instructions from the Central / State Government Authorities from time to time.
  • The pensioner is not required to open a separate pension account. The pension can be credited to his/her existing savings/current account maintained with the branch selected by the pensioner.
  • Before commencement of pension, a pensioner has to be present at the paying branch for the purpose of identification. The paying branch shall obtain the specimen signatures or thumb/ toe impression from the pensioner.
  • All Central Government Pensioners and those State Governments, which have accepted such arrangement can open Joint Account with their spouses.
  • The Joint Account of the pensioner with spouse can be operated either by "Former or Survivor" or "Either or Survivor" basis.
  • The minimum balance criteria for pensioner’s Savings Bank account :

    1. With Cheque Book : Rs.250/-
    2. Without Cheque Book: Rs. 5/- (Rural Branch)
      Rs. 20/- ( Other Branch)

  • Penal Charges for fall in minimum balance :

    1. With Cheque Book : No Charge
    2. Without Cheque Book: No Charge

  • The disbursement of pension by paying branches is spread over the last four working days of the month depending on convenience of the pension paying branch except for the month of March when pension is credited on or after first working day of April.
  • Transfer of pension account :

    1. A Pensioner can transfer his/her pension account from one branch to another branch of the same bank within the same centre or at the different centre;
    2. He/She can transfer his/her account from one authorized bank to another within the same centre (such transfer to be allowed only once in a year);
    3. He/She can also transfer his/her account from one authorized bank at different centre.

  • Procedure for payment of pension in the case of the transfer of PPO to another branch or bank, as the case may be :

    On receipt of application for transfer on a single paper, the Old Bank (Transferor Paying Branch) will send the letter duly signed by the Branch Manager to the new Paying Branch wherever located along with photo copies of Pensioner’s PPO showing the last payment made. Pension will be paid on the basis of the photocopy of the pensioner’s PPO at the transferee (New) branch from the date of the last date of payment made at the transferor (Old) branch. During this time, both the branches (Old and New) are required to ensure that all the required documents are received by the transferee branch within the period of three months under intimation to the concerned Link Branches and Pension Sanctioning Authority.
  • If the pensioner is physically handicapped/incapacitated and unable to be 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.
  • The pensioner has the right to retain half portion of the PPO for record and whenever there is a revision in the Basic Pension /DR etc. the paying branch has to call for the pensioner’s half of the PPO and record thereon the changes according to Government orders/ notifications and return the same to the pensioner.
  • The paying branch before commencement of pension obtains an undertaking 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 the right to recover the excess amount of pension credited to the deceased pensioner’s account from his/her legal heirs/nominees.
  • The pensioner is required to furnish a Life Certificate / Non – Employment Certificate or Employment Certificate to the bank in the month of November every year. However, in case a pensioner is unable to obtain a Life Certificate from an authorized bank Officer on account of serious illness/ incapacitation, bank official will visit his/her residence / hospital for the purpose of recording the life certificate.
  • The pension account is not allowed to be operated by a holder of Power of Attorney. However, the cheque book facility and acceptance of standing instructions for transfer of funds from the account is permissible.
  • The pension paying branch 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 will also allow deductions on account of relief to the pensioner available under the Income Tax Act. The paying branch will also issue to the pensioner in April each year, a Certificate of tax deduction as per the prescribed form.
  • The family pension commences after the death of the pensioner. The family pension is payble to the person indicated in the PPO on receipt death certificate and application from the nominee.
  • As decided by the Central Government (Civil, Defence & Railways ), a pensioner is entitled to get pension slips in prescribed form when the pension is paid for the first time and also thereafter whenever there is a change in quantum of pension due to revision in basic pension or revision in Dearness Relief.
  • For redressal of his/her grievances/ complaints, a Pensioner can initially approach the concerned Branch Manager and, thereafter, the Head Office of the Bank. He/She can also approach the Banking Ombudsman of the concerned State in terms of Banking Ombudsman Scheme, 2006 of the Reserve Bank of India. (details available at RBI’s website
  • The pensioner can visit the Official Website of the concerned Government Department as also Reserve Bank of India Website ( to get the information about pension related issues.

National Pension System

Upto Rs. 50000 can be exempted from taxable income under 80CCD, investing the same in National Pension System

Collection of Central Taxes

Government Deposit Scheme

State Treasury | Authorised Branches

Departmentalized Ministries Accounts (DMA) | Authorised Branches