EPS pensioners can get pension from any bank in India soon. Details here | Mint
Source: Live Mint
The central government on Wednesday, September 4, approved a proposal for a Centralised Pension Payment System (CPPS) for the Employees Pension Scheme (EPS), 1995. The move is expected to benefit more than 78 lakh people.
The Centralised Pension Payment System will be an important shift by establishing a national-level centralised system that will allow pension disbursement through any bank or branch across India, the Union Ministry for Labour & Employment said in a statement.
“The approval of the Centralised Pension Payment System marks a significant milestone in the modernisation 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,” Union Minister Dr Mansukh Mandaviya said.
Efforts on to modernise EPFO
“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,” he added.
This new scheme will be introduced on January 1, 2025, as part of EPFO’s ongoing IT modernisation project, Centralised IT-Enabled System. The government plans to enable a smooth transition to an Aadhaar-based payment system in the next phase of CPPS.
The government expects that CPPS will benefit over 78 lakh pensioners from the Employee Pension Scheme under the Employees Provident Fund Organisation. Additionally, advanced IT and banking technologies are expected to provide seamless and easy access to funds.
According to the government, the centralised system will ensure the distribution of pensions across India without any need to transfer Pension Payment Orders (PPO) from one office to another, despite the change in location or bank branch. This will be beneficial for pensioners who move to their hometown after retirement.
The pensioner will not be required to visit the branch for verification at the time of pension commencement, and the pension will be credited immediately.
“The CPPS is a paradigm shift from the existing decentralised pension disbursement system, with each Zonal/Regional Office of EPFO maintaining separate agreements with only 3-4 banks,” the statement said.
“In addition, EPFO expects a significant cost reduction in pension disbursement after moving to the new system,” the statement added.
