Pensioners Will Soon Receive Payments from Any Bank Branch Nationwide
In a major development for Employees’ Pension Scheme (EPS) 1995 pensioners, the government has announced the introduction of a Centralized Pension Payment System (CPPS) effective January 1, 2025. This new system will allow over 78 lakh pensioners to access their pension from any bank branch across the country, providing significant convenience and flexibility.
Convenience Across the Nation
Labor Minister Mansukh Mandaviya, who is also the Chairperson of the Central Board of Trustees (CBT), approved the CPPS proposal, marking a significant modernization step for the Employees Provident Fund Organization (EPFO). The new system will facilitate pension distribution through any bank or branch nationwide, eliminating the need for pensioners to visit specific EPFO offices or deal with limited banking partners.
Enhanced Accessibility and Efficiency
The CPPS initiative is set to streamline pension payments, ensuring that pensioners can receive their funds from any branch without undergoing cumbersome verification processes. This advancement is especially beneficial for retirees who return to their hometowns after retirement, as it simplifies access to their pension funds regardless of their location.
Transformation of Pension Distribution
The introduction of CPPS is part of EPFO’s ongoing efforts to modernize its services under the CITES 2.01 initiative. The new system replaces the existing process where regional EPFO offices had to establish agreements with only a few banks. By centralizing pension payment, the CPPS aims to enhance the efficiency and responsiveness of EPFO’s pension distribution network.
Future Upgrades and Continued Improvements
Looking ahead, CPPS will be integrated with the existing ABPS (Aadhaar Based Payment System) in future phases, further refining the pension distribution process. The Ministry of Labour and Employment highlights that this upgrade is a pivotal move towards creating a more robust and technologically advanced EPFO.
This transformative change is expected to bring considerable ease and satisfaction to EPS-95 pensioners, marking a significant improvement in the administration of pension payments across India.