There will also be no need for pensioners to visit the branch for any verification at the time of commencement of pension, the statement said.
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New Delhi: EPS Pensioners will now be able to get their pension from "any bank, any branch, anywhere in India" from January 1 next year with Union Labour Minister Mansukh Mandaviya clearing the proposal for a Centralised Pension Payment System (CPPS) for the scheme.
Around 78 lakh EPS pensioners will benefit from this decision, Mandaviya said on Wednesday. He also said they are planning a transition to Aadhaar-based Payment System (ABPS) in the next phase.
"The approval of the CPPS marks a significant milestone in modernization of the EPFO. By enabling pensioners to receive their pensions from any bank, any branch, anywhere in the country, this initiative addresses the long-standing challenges faced by pensioners and ensures a seamless and efficient disbursement mechanism," the Minister said.
This is a "crucial step in our ongoing efforts to transform the EPFO into a more robust, responsive, and tech-enabled organisation, committed to serving the needs of its members and pensioners better," he said.
According to a statement from the Ministry of Labour and Employment, the CPPS would also ensure disbursement of pension throughout India without any need for transfer of Pension Payment Orders (PPO) from one office to another even when the Pensioner moves from one location to another or changes his bank or branch.
The CPPS is a paradigm shift from the existing pension disbursement system that is decentralised, with each Zonal/Regional Office of EPFO maintaining separate agreements with only 3-4 banks.
There will also be no need for pensioners to visit the branch for any verification at the time of commencement of pension and the pension shall be immediately credited upon release, it said.
In addition, it added, EPFO expects a significant cost reduction in pension disbursement after moving to the new system.