Standard Pension Plan Drafts Direct Bank Payment Option

The Standard Pension Plan drafted by Shinkar Committee and announced by the Insurance Regulatory Development Authority (Irda) has, for the first time, stipulated that the insurance companies should provide a direct bank payment option to the policy holders.

Policyholders will be allowed to contribute to the plan with their chosen life insurance company through select banks.

For this purpose, banks will open special accounts for pension policyholders and receive contributions from them.

Once a threshold amount is reached, the bank will transfer the amount to the insurance company for crediting to the policyholders