With the approval of the Centralised Pension Payment System (CPPS) by the Ministry of Labour, about 78 lakh pensioners in the country will now be able to get their pension from any branch of any bank, anywhere in the country.
The system will do away with the need for pension payment orders (PPO) being transferred from one branch/bank to another whenever the pensioner relocates or moves.
This will be a boon to pensioners who relocate to their hometowns after retirement.
This facility is a step in the right direction in terms of technology-driven advancements, which will make the pension disbursal system convenient and user friendly for the lakhs of pensioners across India covered under the Employees’ Pension Scheme,1995. Additionally, the system will also result in cost saving as well as time saving.
Once the CPPS is implemented, there will no longer be any need for each zonal or regional office of EPFO to enter into agreements with just a handful of specific banks for pension disbursal. The more flexible centralised process will be simpler and more efficient, and require less resources.
With this Aadhar-based payment system in place, there will no longer be any need for physical verification for the pension distribution to begin. That means, there will be no need to visit the bank physically for the same, and the beneficiary will find the pension credited as soon as it is released. This brings a lot of relief to senior citizens.
