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Pensioners will not be required to visit the branch for any verification at the time of commencement of pension, and the pension will be immediately credited upon release.
India's Union Minister of Labour and Employment Dr. Mansukh Mandaviya has approved the proposal for a centralised pension payment system (CPPS) for Employees’ Pension Scheme, 1995. With this, effective 1 January 2025, EPS pensioners will be able to receive their pension
from any bank, at any time.
The shift towards a national-level centralised system is said to mark a significant milestone in modernisation of the Employees' Provident Fund Organisation (EPFO), allowing pension disbursement through any bank across India.
Speaking on this decision, Dr. Mansukh said: "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.
"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 will harness advanced IT and banking technologies with the aim to offer a more efficient, seamless, and user-friendly experience for pensioners. This is expected to benefit more than 7.8mn EPS pensioners of EPFO.
The CPPS also allows disbursement of pension throughout India without the need for a transfer of Pension Payment Orders (PPO) from one office to another, even if the pensioner changes their location, bank, or branch. This will particularly benefit pensioners who move to their hometown after retirement.
This facility will be introduced as part of EPFO’s ongoing IT modernisation project Centralised IT Enabled System (CITES 2.01) starting 1 January 2025. In the phase that follows, CPPS hopes to facilitate a smooth transition to Aadhaar-based payment system (ABPS).
Pensioners will not be required to visit the branch for any verification at the time of commencement of pension, and the pension will be immediately credited upon release.
Additionally, EPFO expects a significant cost reduction in pension disbursement following a transition to the new system.
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