The Employees’ Provident Fund Organisation (EPFO) frequently updates and simplifies its rules to benefit customers.
Recently, a significant change has been announced for private employees, which will take effect on January 1, 2025. The central government has already approved this new policy.
Under the upcoming policy, 7.8 million pensioners nationwide will benefit from a new system that allows them to withdraw their provident fund (PF) from any bank or EPF branch.
This means that pensioners will have the convenience and peace of mind to access their funds more efficiently without being tied to a specific bank or branch.
The central government has received a proposal for a Centralized Payment System for the Employees Pension Scheme 1995. This proposal aims to facilitate pension withdrawals from any bank or branch, benefiting millions of pensioners.
Union Minister Dr. Mansukh Mandaviya stated that this new pension system represents a significant step forward in modernizing the EPFO. Once implemented, pensioners can withdraw their pensions from any bank or branch throughout the country.
The centralized pension payment system is expected to be a positive alternative. It would make the process more straightforward by directly depositing funds into pensioners’ accounts.
This approach will not only provide a secure way of pension distribution but also reduce the costs associated with it, ensuring the financial security of the pensioners. The central government is set to roll out this system nationwide.