Pensioners will be able to withdraw their pension from any bank branch as the Centralised Pension Payment System comes came into effect from Jan. 1, 2025.
Union Minister for Labour and Employment Mansukh Mandaviya had in September 2024 approved the proposal for a Centralised Pension Payment System for Employee Pension Scheme.
The CPPS marks a major shift by establishing national-level centralised system, enabling pension disbursement through any bank and any branch across India. The CPPS is expected to benefit more than 78 lakh EPS pensioners of Employee Provident Fund Organisation.
By harnessing advanced IT and banking technologies, it will offer a more efficient, seamless, and user-friendly experience for pensioners.
The system is looking at a technological upgrade as the CPPS is a part of the broader IT revamp project, Centralised IT Enabled System, or CITES 2.01. In the next phase, CPPS will aim to enable a smooth transition to an Aadhaar-based payment system as well.
The CPPS marks a paradigm shift from the existing pension disbursement system that is decentralised, with each zonal or regional office of EPFO maintaining separate agreements with only three to four banks.
"There will 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," stated the circular.
The approval of CPPS 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", Mandaviya said.
In addition, the EPFO expects a significant cost reduction in pension disbursement after moving to the new system. The costs are expected to tone down with transactions and disbursement going digital.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
