78 Lakh EPS Pensioners Can Withdraw Pension from Any Bank from January: Govt
Moneylife Digital Team 04 September 2024
Pensioners under the Employees' Pension Scheme (EPS) 1995 run by the employees' provident fund organisation (EPFO) will be able to get their pension from any bank or branch across India from January, the Union government says. EPFO's apex decision-making body, the central board of trustees (CBT), has approved the proposal for a centralised pension payment system (CPPS) for EPS pension.
 
In a statement, the Union minister of labour and employment Mansukh Mandaviya says, "The approval of the CPPS 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. 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.”
 
CPPS is expected to benefit more than 7.8mn (million) or 78 lakh EPS pensioners of EPFO. By harnessing advanced IT and banking technologies, it will offer a more efficient, seamless, and user-friendly experience for pensioners, the government says.
 
CPPS would also ensure the disbursement of pensions throughout India without any need for transfer of pension payment orders (PPO) from one office to another even when the pensioner moves from one location to another or changes his bank or branch. This would be a great relief to pensioners who move to their hometown after retirement.
 
This facility will be launched as part of EPFO’s ongoing IT modernisation project centralised IT enabled system (CITES 2.01) from 1 January 2025. In the next phase, CPPS will enable a smooth transition to the Aadhaar-based payment system (ABPS).
 
According to the ministry of labour, CPPS is a paradigm shift from the existing pension disbursement system that is decentralised, with each zonal and regional office of EPFO maintaining separate agreements with only three to four banks. "There will also be no need for pensioners to visit the branch for any verification at the time of commencement of pension and the pension shall be immediately credited upon release. In addition, EPFO expects a significant cost reduction in pension disbursement after moving to the new system," it added.
 
Comments
jrkiyer57
4 weeks ago
May the govt don't shame the pensioners with Rs.1000 a month.
aarvi1726
1 month ago
Govt bee mazak ker rahi hai maximum epf pension is Rs3000 hai after servining about35 years,govt koo es ke bare serious sochna chehe
lakinvt20
1 month ago
This is a very welcome move for people who move to their native place after retirement. This will also help people wo after retirement prefer to open a bank account closer to their home rather than operate a bank branch which was closer to their office work place . This is more so in places like Mumbai where commmute to the bank near their erstwhile place of work is daunting for a retired person. But because of paper work and time delays in present EPFO system they are compelled to stay with the earlier stated bank branch given to them to EPFO earlier on attaining 58 years
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