In a significant development for pensioners across the country, a new facility will soon allow them to withdraw their pension from any bank branch. Minister of Labour and Employment Mansukh Mandaviya announced on Wednesday that from January 2025, pensioners enrolled in the Employees’ Provident Fund Organisation (EPFO) pension scheme will be able to access their funds from any bank or branch nationwide.
Currently, pensioners must visit the specific bank or branch where their account is held, creating difficulties if they relocate. The new system aims to address these issues by enabling withdrawals from any participating bank branch.
The Labour Ministry revealed that Mandaviya, who also chairs the Central Board of Trustees (CBT), has approved the introduction of a Centralised Pension Payment System (CPPS) for the Employees’ Pension Scheme (EPS) 1995. This new system will facilitate pension payments through any bank branch in the country.
Mandaviya described the approval of CPPS as a significant step towards modernising the EPFO. The CPPS approval marks a major milestone in enhancing the efficiency of the Employees Provident Fund Organisation. This system will resolve longstanding issues faced by pensioners and ensure a smooth and efficient pension distribution process, he stated.
78 Lakh People to Benefit
Mandaviya stated that this development is a significant step towards transforming the EPFO into a more robust, responsive, and technology-driven organisation, better equipped to meet the needs of its members and pensioners. Over 78 lakh EPS-95 pensioners of EPFO are expected to benefit from the new centralised pension payment system. This system will ensure a seamless pension disbursement process across the country, eliminating the need to transfer Pension Payment Orders (PPOs) between offices.
This will be a significant relief for pensioners who relocate to their hometowns after retirement. The new facility, part of EPFO’s ongoing IT modernisation project Centralised IT Equipped System (CITES 2.01), will be launched on 1 January 2025. In the subsequent phase, CPPS will transition smoothly to the Aadhaar-based Payment System (ABPS).
According to the ministry’s statement, the new system represents a major overhaul of the current pension disbursement process. Under the existing system, each EPFO regional office had to establish separate agreements with just three or four banks. The statement noted that with the new system, pensioners will no longer need to visit the bank branch for verification when their pension begins, and payments will be credited immediately upon release.
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