EPS rule update: Pensioners can now withdraw pension from any bank branch

The newly introduced Centralised Pension Payments System (CPPS) is expected to benefit 78 lakh EPS pensioners with its convenience.

Employees’ Pension Scheme (EPS) subscribers now have access to their pension from any bank branch in India.

Pensioners don't have to visit the branch for any verification and it will be credited immediately upon release (HT Photo)

The ministry of labour and employment made the announcement in a statement on September 4 last year as part of the newly introduced Centralised Pension Payments System (CPPS) which is expected to benefit 78 lakh EPS pensioners with the convenience, Mint reported.

Pensioners don't have to visit the branch for any verification and their pensions would be credited immediately upon release.

Earlier, if a pensioner would move to a new town after retirement, he had to go for a transfer of pension payment orders from one office to another or to change bank or branch.

All of this work is no longer needed with the rollout of CPPS.

Also, the earlier practice of each Employees' Provident Fund Organisation (EPFO) zonal office maintaining separate agreements with only 3-4 banks will also be phased out.

“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," Mint quoted Union minister Mansukh Mandaviya as saying.

"This is a crucial step in our ongoing efforts to transform the EPFO into a more robust, responsive, and tech-enabled organization, committed to serving the needs of its members and pensioners better,” he said.

What is EPS?

The EPFO started EPS in 1995 to provide its members with a life-long pension. Out of the 12% employer contribution, 8.33% was mandated to go into EPS, and the remaining 3.67% to go into EPF.