Welfare pensions through bank accounts: Order yet to be issued, beneficiaries left confused

Palakkad: The government’s decision to shift the distribution of welfare pensions from doorstep delivery to bank accounts is yet to be implemented, as the formal order is still pending. Beneficiaries are making visits to panchayat offices with their passbooks, while local bodies remain confused about the procedure.

The government announced its decision to distribute welfare pensions through banks on July 27. Following concerns over the move, the government said the issues would be addressed and detailed guidelines would be prepared. However, no further decisions or orders have been issued since then.

Beneficiaries are visiting panchayat offices after hearing reports that they would not receive pensions if they did not open a bank account immediately. However, local bodies are sending them back as they are yet to receive orders from the pension section or the Finance Department.

In some places, panchayat offices are collecting and keeping copies of beneficiaries’ bank passbooks. However, bank accounts cannot currently be linked because the pension website has not been updated. There is also no clarity on whether beneficiaries will have to open new bank accounts or whether existing accounts in their names will be sufficient.

It is likely that the account will have to be linked to Aadhaar. The possibility of using India Post Payments Bank, operated under the Department of Posts, is also being examined. Therefore, local bodies cannot determine which passbook beneficiaries should submit until the government issues clear instructions.

Existing system to continue until new order is issued

The senior superintendent of the Social Security Pension section under the Local Self-Government Department said pension distribution would not be shifted entirely to bank accounts without issuing an order and notification. As many as 23,14,996 people currently receive their pensions at home. The distribution for Onam was completed under the existing system.

Until a new order is issued, the current system will continue, officials said. The government has not instructed beneficiaries to approach local bodies with their bank passbooks. Officials also clarified that no one’s pension will be stopped in the name of the proposed change.