Revolutionizing Pension Distribution: India's Centralized System Set for Rollout

India's Union Minister Mansukh Mandaviya announced the successful pilot of the Centralized Pension Payments System, aiming to streamline pension distribution for over 78 lakh pensioners. The new system allows pensioners to receive payments nationwide without bank visits. The full rollout is expected by January 2025.

In a significant stride towards improving pension services, Union Minister of Labour, Employment, and Youth Affairs, Mansukh Mandaviya, has proclaimed the successful pilot of the Centralized Pension Payments System (CPPS) under the Employees' Pension Scheme 1995.

The pilot, conducted on October 29th and 30th, 2024, facilitated the pension disbursement of approximately Rs 11 Crore to more than 49,000 EPS pensioners in the Jammu, Srinagar, and Karnal Regions. Minister Mandaviya highlighted the CPPS as a pivotal advancement for the Employees' Provident Fund Organisation (EPFO), transitioning from a decentralized system to a centralized mechanism allowing pensioners to collect their benefits from any bank branch across India.

The CPPS eliminates the need for physical bank visits for verification and ensures seamless pension transfers, even as pensioners change locations or banks. Set to be integrated into EPFO's IT modernization project, CITES 2.01, by January 2025, this initiative promises to aid over 78 lakh EPS pensioners nationwide, underscoring the organization's commitment to tech-driven service improvements.

(With inputs from agencies.)