New Delhi: Come January 1, 2025, pensioners will be able to get their pension from any bank, anywhere in India. Union Minister of Labour and Employment and Chairperson, Central Board of Trustees, EPF has approved the proposal for a Centralised Pension Payment System (CPPS) for the Employees’ Pension Scheme, 1995. The CPPS marks a major shift by establishing a national-level centralised system, enabling pension disbursement through any bank, any branch across India.
Speaking about this landmark decision, Union Minister Dr Mansukh Mandaviya said, “The approval of the Centralised Pension Payment System (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.”
The Centralised Pension Payment System is expected to benefit more than 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 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 January 1, 2025. In the next phase, CPPS will enable a smooth transition to an Aadhaar-based payment system (ABPS).
The CPPS is a paradigm shift from the existing pension disbursement system that is decentralised, with each Zonal/Regional Office of EPFO maintaining separate agreements with only 3-4 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.
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