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New EPF Rule: For pensioners in rural or remote areas, this update could be a game-changer, as it reduces dependency on a specific branch and ensures access to funds even in underserved locations.
Pensioners will now be able to use their existing pension-linked bank accounts to withdraw their pensions from any branch of their bank.
Starting today, January 1, 2025, pensioners under the Employees’ Pension Scheme (EPS), 1995, can withdraw their pensions from any bank branch across India. This transformative move, approved on November 10, 2024, by the Ministry of Labour and Employment, aims to make pension disbursement more convenient and accessible for over 70 million beneficiaries.
What Does This Mean for Pensioners?
Previously, pensioners were required to visit their designated bank branches to withdraw their monthly pensions. This often posed challenges, especially for those who relocated or travelled frequently. The new change eliminates this limitation, enabling pensioners to withdraw their pensions from any branch of their bank, regardless of location. This provides greater flexibility, ease of access, and ensures seamless pension services for retirees.
For pensioners in rural or remote areas, this update could be a game-changer, as it reduces dependency on a specific branch and ensures access to funds even in underserved locations. Furthermore, the measure aligns with the government’s push for digitization and efficient delivery of public services.
The Change: How It Works
Under the revised system:
- Pensioners will be able to use their existing pension-linked bank accounts to withdraw their pensions from any branch of their bank.
- Banks will integrate their systems to recognize and authenticate EPS beneficiaries across all branches.
- Pensioners will need their Aadhaar-linked accounts or valid proof of identity for authentication during withdrawals.
The Proposal and Approval Timeline
The Employee Provident Fund (EPF) organization approved the proposal for a Centralized Pension Payment System (CPPS) for the Employees’ Pension Scheme, 1995. According to a press statement from the Press Information Bureau on September 4, 2024, this system aims to enable EPS pensioners to receive their benefits from any bank, branch, or location in India beginning on January 1, 2025.
The Ministry of Labour and Employment gave the final nod on November 10, 2024, as part of broader reforms to modernise the EPS framework. The proposal emerged in response to growing feedback from pensioners who faced difficulties accessing pensions while away from their designated branches. By leveraging centralised technology, the government sought to address these challenges effectively.
Government’s Vision
Union Labour Minister Mansukh Mandaviya, in a statement announcing the approval, said, “This move underscores our commitment to making life easier for senior citizens and retirees. By breaking geographical barriers, we are ensuring that pensioners enjoy financial independence and convenience in their golden years.”
The CPPS aligns with the government’s larger agenda of enhancing efficiency in social security systems and promoting financial inclusion across India.
What Pensioners Should Do
To take advantage of this facility, pensioners should ensure:
Their pension account is Aadhaar-linked.
Their bank has implemented the nationwide access system (most major banks confirmed readiness by December 2024).
They keep valid identity documents for verification during transactions.
