CPPS gets green light; pensioners to get payments via any bank, branch

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Last Updated06/09/2024

Pensioners under Employees’ Pension Scheme 1995 run by retirement fund body EPFO will be able to get pension from any bank or branch across India

Starting January 2025, pensioners under the Employees' Pension Scheme 1995 (EPS-95), managed by the Employees’ Provident Fund Organisation (EPFO), will be able to receive pensions from any bank or branch across India.
Labour Minister Mansukh Mandaviya announced this as part of a new initiative to modernize pension disbursement.

Major Shift in Pension Disbursement
The Central Board of Trustees, chaired by Mandaviya, approved the Centralized Pension Payment System (CPPS), a significant change to establish a national-level system for efficient pension disbursement.
This system will allow pensioners to receive their pensions from any bank, ensuring a seamless process.

Tech-Enabled Efficiency
Mandaviya highlighted that the CPPS represents a crucial step toward making EPFO more responsive and technology-driven. By eliminating the traditional zonal restrictions, pensioners will no longer face challenges in receiving pensions across different locations or banks.

Relief for EPS-95 Pensioners
The new system is expected to benefit over 78 lakh pensioners by integrating advanced IT and banking technology for a seamless experience. It will remove the need for transferring Pension Payment Orders (PPOs) when pensioners change locations or banks, simplifying the pension disbursement process.
Part of IT Modernisation
CPPS will be part of EPFO’s Centralized IT Enabled System (CITES 2.01), launching on January 1, 2025. The next phase will see a transition to Aadhaar-based payment systems (ABPS), further enhancing the service.

Cost-Efficient and Hassle-Free
The ministry stated that this centralized approach would also reduce the costs associated with pension disbursement. The need for pensioners to visit bank branches for verification will be eliminated, and payments will be credited immediately upon release.