The Employees’ Provident Fund Organisation (EPFO) has empanelled 15 additional banks to facilitate direct transfer of contributions, a move aimed at improving efficiency and reducing delays. With this expansion, the total number of empanelled banks has reached 32, marking a significant shift in how EPFO handles employer contributions.
A Major Boost for Provident Fund Transactions
The decision to increase the number of banks was finalized in EPFO’s November 2024 meeting, where the Central Board of Trustees (CBT) approved the move. Until now, the empanelment criteria required banks to have at least a 0.50% share of the total EPFO collection. However, under the revised framework, even banks with a 0.2% collection share are eligible.
This change aligns with EPFO’s broader strategy to streamline operations and improve fund management efficiency. By engaging a wider network of banks, the organisation aims to speed up transaction processing and reduce administrative bottlenecks that often cause delays in fund transfers.
How EPFO Members Will Benefit
With more banks handling EPF transactions, members are expected to experience fewer delays and smoother verification processes. The government sees this as part of a larger vision for improving social security services and financial ease for workers.
- Faster Processing: Contributions made by employers will reach EPFO quicker, leading to faster crediting of funds to employees’ accounts.
- Easier Verification: Accounts linked with these banks will have seamless verification, reducing paperwork and manual intervention.
- Better Fund Management: EPFO will be able to distribute workloads among more banks, minimizing risks of payment bottlenecks.
The Role of Banks in Provident Fund Collections
EPFO’s move to expand its banking network follows its ongoing efforts to optimize the provident fund system. The newly empanelled banks will now play a key role in handling employer contributions and ensuring timely fund transfers to EPFO. With direct transfers, the organisation aims to minimize disruptions and enhance fund security.
The list of empanelled banks includes both RBI agency banks and scheduled commercial banks that meet the eligibility criteria. The government’s decision reflects a push towards increased financial inclusion and efficiency in public sector fund management.
A Step Toward Financial Ease and Transparency
Union Minister for Labour & Employment, Mansukh Mandaviya, emphasized the importance of this initiative, calling it a step toward ‘Naya Bharat’ and ‘Viksit Bharat.’ He reiterated the government’s focus on providing Ease of Living for members and Ease of Doing Business for employers.
As EPFO continues to modernize its operations, such reforms are expected to enhance the overall experience for both employers and employees. With financial transactions becoming smoother and more transparent, provident fund members can expect greater reliability and speed in accessing their contributions.
