BPS Urges Finance Ministry to Implement Auto-Sweep Facility in Pension Accounts: Enhancing Returns and Liquidity for Central/State, PSU, and Senior Citizen Pensioners
Ref. No. BPS/Auto-Sweep Facility/2025
Date: 12th December, 2025
To
The Hon’ble Finance Minister
Government of India
New Delhi
Emails: [email protected], [email protected]
cc:
The Governor
Reserve Bank of India
18th Floor, Central Office Building
Shahid Bhagat Singh Road
Mumbai — 400001
Email: [email protected]
Subject: Implementation of Auto-Sweep Facility in Pension Accounts of Central/State Government, PSU/Autonomous Pensioners and Senior Citizens
Respected Madam, Greetings of the day!
The Bharat Pensioners Samaj (BPS), a non-political, non-profit, and secular All-India Federation of Pensioners’ Associations established in 1955, respectfully submits this representation for your kind consideration. BPS, recognized by the Government of India including the Department of Pension & Pensioners’ Welfare (DoP&PW) and NITI Aayog, represents nearly 10 lakh pensioners through 245 affiliate associations across the country.
Over the years, the BPS has remained steadfast in advocating for the rights, welfare, and social security of pensioners and senior citizens, collaborating with governmental bodies to address grievances through mechanisms such as the Central Pensioners’ Empowerment and Grievance Redressal Mission (CPENGRAMS) and Pension Adalats.
In continuation of these efforts, BPS proposes the introduction of an Auto-Sweep Facility in all pension and senior citizen accounts across Scheduled Commercial Banks.
Proposed Features:
Automatic Sweep-in: Surplus funds in a pensioner’s savings account would be seamlessly transferred to a linked fixed deposit or flexi-deposit, allowing them to earn higher interest without manual intervention.
Automatic Sweep-out: Funds can be transferred back to the savings account upon the pensioner’s need, ensuring liquidity and accessibility.
Key Benefits of the Proposed Facility:
Enhanced Financial Security: Earn optimal returns on idle funds while maintaining principal safety within the banking system.
Convenience for Senior Citizens: Eliminate the need for repeated bank visits or manual management of deposits, aligning with the digital empowerment goals for the elderly.
Promotion of Responsible Savings: Encourage prudent financial habits through automated wealth management.
To ensure robust implementation, we recommend:
a) Linking pension accounts with authorized financial institutions for auto-sweep operations.
b) Permitting the highest applicable interest rates, with proportional deductions if funds are withdrawn prior to
c) Ensuring compatibility with existing pension disbursement systems and senior citizen banking schemes.
We request your esteemed consideration for integrating this facility into the pension and senior citizen account ecosystem. The BPS is committed to collaborating with relevant ministries and departments to facilitate this initiative, which we believe will significantly enhance the quality of life for pensioners and uphold their dignity in retirement.
We look forward to your favourable response and guidance on this matter.
With respectful regards,
Yours sincerely,
Avinash Rajput
Secretary General
Bharat Pensioners Samaj
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