Q600. Pension deposits in Indian bank account after moving abroad . . .

Question: Dear Mr. Virender Chand

I went through your website and i can see you doing a great service to many Indians which is really commendable. similar to

others and i have an issue to be clarified.

I stay in Indonesia jakarta as NRI. so I would like my father to stay along with me here as he is alone there. Since he is retired

Central Govt employee, he is drawing the pension in india in Andhra pradesh. Can his

1. Pension be deposited in his local account as usual even though he stays here with me.

2. If it can what is the procedure he has to follow to complete the formalities so that his pension is deposited in his bank account

and he can draw it once in a year as we come on vacation to India.

Pl give it in detail, so that it would be easy and helpful for him.

Thanks a lot in advance

Best Regards

Anand Reddy

Answer: It is very noble of you to want your father to stay with you rather than be alone in India! As for your questions: 1. Pension can still be deposited in your father’s bank account in Andhra Pradesh, provided your father is visiting you periodically and does not become a non-resident Indian. This is because NRIs cannot keep resident bank accounts in India. If your father intends to move permanently to Indonesia, he needs to notify his bank and get his resident bank account predesignated to a Non Resident Bank Account (NRO). 2. The procedure for Indian pensioners who become non-residents by moving abroad, requires that they open a NRO account where their pension can be deposited. They may in some cases be required to execute a prower of attorney in favor of the bank. The department paying the pension, may have to be notified of the pension bank account change. Your father’s bank where he has his current pension account should be able to guide him. In India, it is common for those receiving pension income to show up in person once a year, usually the month of November. This visit is considered as proof of the person still being alive. Those who are living out of India and getting Indian pensions, can generally get a life certificate issued from the nearest Indian Embassy/Consulate in the country they reside in. This has to be done once a year in November and the life certificate should be sent to the pension authorities in India. I am including a link to the Pensioners Portal Government of India website where you can find more information in detail and get answers to any other pension questions you may have. http://www.pensionersportal.gov.in/index.asp

Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail. © Copyright 2006 Nriinformation.com

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Q600. Pension deposits in Indian

bank account after moving abroad

Question: Dear Mr. Virender Chand I went through your website and i can see you doing a great service to many Indians which is really commendable. similar to others and i have an issue to be clarified. I stay in Indonesia jakarta as NRI. so I would like my father to stay along with me here as he is alone there. Since he is retired Central Govt employee, he is drawing the pension in india in Andhra pradesh. Can his 1. Pension be deposited in his local account as usual even though he stays here with me. 2. If it can what is the procedure he has to follow to complete the formalities so that his pension is deposited in his bank account and he can draw it once in a year as we come on vacation to India. Pl give it in detail, so that it would be easy and helpful for him. Thanks a lot in advance Best Regards Anand Reddy Answer: It is very noble of you to want your father to stay with you rather than be alone in India! As for your questions: 1. Pension can still be deposited in your father’s bank account in Andhra Pradesh, provided your father is visiting you periodically and does not become a non-resident Indian. This is because NRIs cannot keep resident bank accounts in India. If your father intends to move permanently to Indonesia, he needs to notify his bank and get his resident bank account predesignated to a Non Resident Bank Account (NRO). 2. The procedure for Indian pensioners who become non-residents by moving abroad, requires that they open a NRO account where their pension can be deposited. They may in some cases be required to execute a prower of attorney in favor of the bank. The department paying the pension, may have to be notified of the pension bank account change. Your father’s bank where he has his current pension account should be able to guide him. In India, it is common for those receiving pension income to show up in person once a year, usually the month of November. This visit is considered as proof of the person still being alive. Those who are living out of India and getting Indian pensions, can generally get a life certificate issued from the nearest Indian Embassy/Consulate in the country they reside in. This has to be done once a year in November and the life certificate should be sent to the pension authorities in India. I am including a link to the Pensioners Portal Government of India website where you can find more information in detail and get answers to any other pension questions you may have. http://www.pensionersportal.gov.in/index.asp

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