In a significant move towards improving the lives of millions of pensioners, the Centre has introduced the Centralised Pension Payments System (CPPS), poised to benefit over 78 lakh people under the Employee Pension Scheme (EPS).
Dr. Mansukh Mandaviya, Union Minister of Labour and Employment, has announced that, starting from January 1, 2025, EPS pensioners will be able to receive their pensions from any bank, any branch, anywhere in India.
This initiative will not only simplify the pension disbursement process but also offer a range of benefits to pensioners, enhancing their financial security and convenience.
The introduction of CPPS marks a shift in the way pensions are disbursed in India. Traditionally, pensioners under the EPS had to rely on a specific bank branch for their pension, often requiring multiple visits for verification and updates. This system created unnecessary delays and hardships, especially for elderly pensioners or those who have relocated to different cities.
With the CPPS, the hassle of visiting branches for verifications or for pension credits will become a thing of the past. Pensioners can now receive their pensions at any bank or branch across the country, providing them with unprecedented flexibility. For example, a pensioner who moves from one state to another no longer needs to transfer their pension account or worry about location-based formalities. This ensures a smoother, more efficient system, freeing pensioners from bureaucratic red tape and ensuring they receive their pensions on time, wherever they may be.
One of the most notable features of the CPPS is the immediate credit of pension amounts upon release. The new system will eliminate delays by crediting the pension directly into the pensioner’s account, improving financial predictability and stability for pensioners, many of whom rely on these payments for their day-to-day living expenses.
Moreover, the need for pensioners to physically visit their bank for verification at the time of pension commencement will no longer be required. This is particularly beneficial for senior citizens and those with mobility issues. The entire process, from pension commencement to disbursement, will be streamlined, using digital technologies to ensure verification is automated and seamless. This reduction in manual intervention will reduce errors and improve the overall efficiency of the pension system.
By simplifying pension disbursement and allowing pensions to be accessed from any bank or branch, the government is ensuring that pensioners in rural areas, small towns, and cities alike are treated equally. This level of access will be especially beneficial to those in remote areas where pensioners previously faced difficulties due to limited access to specific bank branches.
