The Government of India has given a New Year gift to over 78 lakh pensioners associated with the Employees’ Provident Fund Organization (EPFO). The government has approved the Centralized Pension Payment System (CPPS), which allows pensioners to withdraw their pension from any bank branch across the country. This facility became effective on January 1, 2025.
The Modi government has provided significant relief to pensioners under the Employees’ Pension Scheme (EPS) 1995. Now, pensioners will be able to easily withdraw their pension from any bank branch, regardless of their location in India. The central government approved this proposal in September, and it has now been implemented from January 1.
Pilot Run Successful in Jammu, Srinagar, and Karnal Regions
Union Minister Mansukh Mandaviya announced that under the pilot run of the Centralized Pension Payments System (CPPS), more than ₹11 crore in pension was disbursed to over 49,000 EPS pensioners from the Jammu, Srinagar, and Karnal regions in October. The trial was completed.
Pension Withdrawal from Anywhere, No Need to Transfer PPO
With the implementation of the CPPS, pensioners who have relocated from one city to another will benefit significantly. They no longer need to change banks or branches, and transferring their Pension Payment Order (PPO) will not be necessary.
What is the CPPS System?
The Centralized Pension Payments System (CPPS) is a new facility that allows pensioners to withdraw their pensions from any bank branch across India. With CPPS, pensioners no longer need to transfer pension payment orders from one office or bank to another, making it especially convenient for those who return to their hometowns or villages after retirement.
Problems in the Old Pension Distribution System
The previous pension distribution system was decentralized. Each regional EPFO office (EPFO Update) had contracts with only a few banks, limiting pension withdrawal options. Pensioners had to visit a bank for verification when starting their pension and had to transfer their PPO to another branch if they moved to a new city. These issues have now been resolved with the introduction of CPPS, marking a major improvement for pensioners in the new year.
