Joint bank account not mandatory for spouse pension

All banks disbursing central government pension have been advised that in case the spouse (family pensioner) opts for the existing joint bank account for credit of family pension, banks should not insist on opening a new account.
 
Joint bank account is not mandatory for spouse pension, the government said last week.
 
Union Minister of State for Personnel, Public Grievances and Pensions Jitendra Singh said the Narendra Modi government has always sought "ease of living" for all sections of society, including retirees and pensioners who are the nation's assets with all their experience and long years of service rendered by them.
 
He said in case the head of office is satisfied that it is not possible for the retiring government servant to open a joint account with his or her spouse for reasons beyond his or her control, this requirement may be relaxed, an official statement said.
 
All banks disbursing central government pension have been advised that in case the spouse (family pensioner) opts for the existing joint bank account for credit of family pension, banks should not insist on opening a new account, it said.
 
A joint bank account with spouse is however desirable and it is to be opened with their spouse in whose favour an authorisation for family pension exists in the Pension Payment Order (PPO), said the statement issued by the Personnel Ministry.
 
Operation in these accounts would be on "former or survivor" or "either or survivor" basis as desired by the pensioner, Mr Singh said.
 
The reason for opening of joint bank account is to ensure that family pension may be commenced without any delay and the family pensioner is not subjected to any hardships for opening of a new pension bank account, the statement said.
 
This also ensures minimum documentation for the family pensioner while submitting request for commencement of family pension, it said.

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Changes in Our Business Model
 
 
25th Sept 2020
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
 
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Debashis Basu
Founder