The Indian government has announced some positive changes for EPS pensioners. They will soon be able to receive their pension from any bank, regardless of their location within the country.
Mansukh Mandaviya, the Union Minister of Labour and Chairman of the EPF Trust Board has confirmed that the EPF has approved implementing a centralized pension payment system.
This new system is expected to be operational from January 1, 2025, and will benefit around 78 lakh pensioners.
The introduction of the centralized payment system is a significant step forward in the modernization of EPFO.
It aims to address pensioners’ long-standing demand for flexibility. With this system in place, pensioners will have the flexibility to receive their pension from any bank branch nationwide without transferring their pension payment orders when relocating.
Additionally, the system will simplify procedures for pension verification, especially during bank or branch changes.
The Centralized Pension Payment System (CPPS) is anticipated to bring about substantial improvements to the existing pension distribution process.
The current system involves tie-ups between EPFO Zonal/Regional Offices and only 3-4 banks, requiring pensioners to visit the respective bank branches for verification at the start of their pension disbursement.
The new centralized approach will eliminate the need for such visits and ensure prompt deposit of pension amounts upon release. Furthermore, it is expected to reduce the overall cost of pension distribution.
Mandavia also mentioned plans to introduce an Aadhaar-based payment system in the next development phase.