EPS Pensioners to get pension from any bank, any branch, anywhere in India from January 1: Mansukh Mandaviya
Sep 04, 2024
New Delhi [India], September 4 : Union Minister of Labour and Employment Mansukh Mandaviya and Chairperson of the Central Board of Trustees, EPF, have given the green light to the proposal for a Centralised Pension Payment System (CPPS) under the Employees' Pension Scheme, 1995.
According to the Ministry of Labour and Employment, this initiative represents a major advancement by establishing a national-level centralised system, allowing pension disbursement through any bank or branch across India.
Commenting on this development, Mandaviya stated, "The approval of the Centralised Pension Payment System (CPPS) marks a significant milestone in the modernization of the EPFO. By enabling pensioners to receive their pensions from any bank, any branch, anywhere in the country, this initiative addresses the long-standing challenges faced by pensioners and ensures a seamless and efficient disbursement mechanism."
He added, "This is a crucial step in our ongoing efforts to transform the EPFO into a more robust, responsive, and tech-enabled organisation, committed to serving the needs of its members and pensioners better."
The CPPS is expected to benefit over 7.8 million EPS pensioners of EPFO. By leveraging advanced IT and banking technologies, it aims to provide a more efficient and user-friendly experience for pensioners.
The CPPS will also ensure seamless pension disbursement across India, eliminating the need to transfer Pension Payment Orders (PPO) when a pensioner relocates or changes their bank or branch. This will be a significant relief for pensioners who move to their hometowns post-retirement.
This facility will be launched on January 1, 2025, as part of EPFO's ongoing IT modernization project, Centralised IT Enabled System (CITES 2.01). In the following phase, CPPS will enable a smooth transition to an Aadhaar-based payment system (ABPS).
The CPPS marks a significant departure from the current decentralised pension disbursement system, where each EPFO Zonal/Regional Office maintains separate agreements with only 3-4 banks.
Pensioners will no longer need to visit branches for verification at the start of their pension, as it will be credited immediately upon release. Additionally, EPFO anticipates a significant reduction in disbursement costs with the new system.
