Answer By law4u team
For many senior citizens, pensions are their primary or sole source of income. Unfortunately, some elders face financial exploitation from those they trust most, such as caregivers or family members. Misuse can happen through joint accounts, unauthorized withdrawals, or pressure to hand over ATM cards or credentials. To maintain financial safety and independence, elders must adopt both legal and practical safeguards.
Measures To Secure Pension from Misuse
Maintain Sole Ownership of Pension Account
Avoid joint accounts unless absolutely necessary. Prefer single-holder accounts with trusted nominees, which prevent others from accessing funds without consent.
Nominate a Trusted Person
Nominate a responsible individual for the pension account. Nomination does not grant control during the elder's lifetime but helps in seamless fund transfer after death.
Use Limited or Specific Power of Attorney (PoA)
If assistance is needed, grant a limited PoA outlining specific permissions (e.g., withdrawing pension only) rather than a general one. This reduces the chance of misuse.
Opt for Biometric Authentication (Aadhaar-linked services)
Use biometric verification for pension withdrawals (e.g., Jeevan Pramaan) to avoid PIN sharing or ATM card misuse.
Activate Transaction Alerts
Enable SMS and email alerts for all bank activities to monitor withdrawals in real time.
Avoid Sharing Bank Credentials
Do not share ATM PINs, UPI codes, or passwords—even with close relatives. Use biometric locks on financial apps.
Use Separate Accounts for Pension and Household Use
Keep a dedicated pension account and transfer only limited amounts to any joint or shared account for monthly expenses.
Update Bank Details Personally
Personally visit the bank for changes like mobile number updates or re-issuance of debit cards to prevent fraud by intermediaries.
Appoint a Legal Guardian if Mentally or Physically Incapacitated
Under the Maintenance and Welfare of Parents and Senior Citizens Act, a legal guardian can be appointed through court to manage finances responsibly.
Periodic Legal and Financial Reviews
Consult with legal or financial advisors to periodically assess account safety, especially if there are signs of manipulation or pressure.
Legal Remedies and Protections
Register Complaints of Financial Abuse
File an FIR under IPC Sections like 406 (criminal breach of trust), 420 (cheating), or 379 (theft) in case of unauthorized pension withdrawals.
Approach the Bank’s Grievance Redressal Cell
If funds were withdrawn fraudulently, contact the bank's branch manager and escalate to the ombudsman if unresolved.
Seek Tribunal Help under Senior Citizens Act
File a complaint before the Maintenance Tribunal for protection of property or pension from misuse by legal heirs or others.
Cybercrime Portal for Online Pension Fraud
Report any digital or UPI-based fraud at cybercrime.gov.in or by visiting the local cyber cell.
Consult District Legal Services Authority (DLSA)
Free legal assistance is available for senior citizens through DLSA, especially for recovering misused pension or property.
Example
A retired teacher receives ₹25,000 monthly pension in a joint account with her son. She notices that large sums are being withdrawn without her knowledge. When questioned, the son claims it's for family expenses.
Steps she should take:
Visit the bank and request to convert the account into a single-holder account.
File a complaint with the branch manager for unauthorized withdrawals.
Register an FIR for financial abuse under relevant IPC sections if funds are misappropriated.
Approach the Maintenance Tribunal seeking protection and monthly maintenance.
Switch to using a biometric pension verification method like Jeevan Pramaan.
Educate herself on financial safety or consult a legal aid clinic through DLSA.
