Pensioners under the Employees' Pension Scheme (EPS) 1995, managed by the Employees' Provident Fund Organisation (EPFO), will soon be able to receive their pensions from any bank or branch across India starting January 2025. This comes after Labour Minister Mansukh Mandaviya, who also chairs the EPFO's Central Board of Trustees, approved the Centralized Pension Payment System (CPPS).
The CPPS marks a significant shift towards a national-level centralised pension disbursement system. It allows pensioners to receive payments without the need to transfer Pension Payment Orders (PPOs) when changing locations or banks, providing a seamless experience for over 7.8 million EPS-95 pensioners.
"The approval of the CPPS marks a significant milestone in modernisation of the Employees' Provident Fund Organisation (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," the minister said.
"This initiative is a crucial step in modernising the EPFO, addressing long-standing challenges, and ensuring efficient pension disbursement across the country," said Mandaviya. The system is part of EPFO's ongoing IT modernisation project, Centralized IT Enabled System (CITES 2.01), and is expected to eventually transition to an Aadhaar-based payment system (ABPS).
The new system will also eliminate the need for pensioners to visit bank branches for verification at the start of their pension, with payments credited immediately upon release. Additionally, EPFO anticipates significant cost savings in pension disbursement with this transition.
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