EPFO Expands Banking Partnerships to Enhance Services
The Employees’ Provident Fund Organisation (EPFO) has announced a significant expansion of its banking partnerships, adding 15 new public and private sector banks. This initiative, unveiled in New Delhi by Union Minister Dr. Mansukh Mandaviya, aims to streamline payment processes for employers and enhance the overall efficiency of EPFO operations. With this expansion, EPFO expects to facilitate direct payments of approximately ₹12,000 crore annually, benefiting millions of members and pensioners across the country.
New Banking Partnerships to Boost Efficiency
In a move to improve service delivery, EPFO has entered into agreements with 15 additional banks, bringing the total number of empanelled banks to 32. This expansion is expected to simplify the process for employers who need to remit contributions. The new partnerships will allow for direct access to employers maintaining accounts with these banks, thereby reducing transaction delays and enhancing operational efficiency. The initiative is part of EPFO’s broader strategy to modernize its services and ensure timely payments for its members. Dr. Mandaviya highlighted that the empanelment of these banks will eliminate the need for an aggregator payment mechanism, which has often caused delays in processing contributions. By enabling faster transactions, EPFO aims to improve the overall experience for both employers and employees. The new system will allow dues remitted through these banks to be available for investment on the next day, compared to the previous two-day wait when using aggregators.
EPFO’s Commitment to Social Security
Dr. Mandaviya emphasized the critical role of EPFO in ensuring social security for the nation. With nearly 8 crore active members and over 78 lakh pensioners, EPFO is a cornerstone of India’s social security framework. The minister noted that the organization has made significant strides in improving its services, including the implementation of EPFO 2.01, a robust IT system that has enhanced claim settlements. In the financial year 2024-25, EPFO settled a record 6 crore claims, marking a 35% increase from the previous year. Furthermore, the introduction of the Centralized Pension Payment System allows pensioners to receive their payments in any bank account across the country, removing previous restrictions that required them to have accounts in specific banks. This reform is expected to significantly benefit pensioners, making the process more accessible and efficient.
Future Innovations and Improvements
Looking ahead, Dr. Mandaviya reiterated EPFO’s commitment to continuous improvement and innovation. The organization is actively working towards the next phase, EPFO 3.0, which aims to enhance accessibility and efficiency further. The minister also mentioned the introduction of an auto claim settlement process, which has drastically reduced claim processing times to just three days. In the current financial year, EPFO has settled 2.34 crore claims through this system, representing a remarkable 160% increase from the previous year. In addition to these advancements, EPFO continues to offer an attractive interest rate of 8.25% to its beneficiaries. The collaboration with newly empanelled banks is expected to further enhance the efficiency of EPFO services, ultimately benefiting both employers and members. As EPFO strives to provide an improved experience, the organization remains focused on its vision of a “Viksit Bharat,” ensuring robust social security for all.
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