EPFO 3.0: The objective has been established to finalize the Centralized IT-Enabled System (CIETS 2.01) and EPFO 3.0 for the Employees’ Provident Fund Organization (EPFO) by March 31. Officials affiliated with EPFO have indicated that a trial will take place following the completion of the IT system development.
Banking-like services from their EPF accounts
It is anticipated that by mid-June of this year, EPFO members will begin to receive banking-like services from their EPF accounts. Various matters were addressed during the 112th meeting of the Executive Committee (EC) of the EPF, which is part of the Central Board of Trustees of EPFO, held on Tuesday.
New system will be established under EPFO 3.0
The meeting highlighted that a new system will be established under EPFO 3.0, aimed at broadening social security coverage through the use of advanced technology. Members will have the option to withdraw a predetermined amount from their PF accounts as needed, similar to banking practices. Additionally, in the future, EPFO members will have access to various online services, including the ability to increase their own contributions.
The meeting also resolved to eliminate unnecessary verification processes, facilitating easier access for EPFO members to withdraw small amounts through a simplified partial withdrawal mechanism. EPFO underscored the importance of ensuring prompt claim settlements, seamless pension disbursements, and enhanced service delivery for its members, thereby accelerating digital transformation and member-focused reforms. The EC also deliberated on the topic of pensions based on higher wages, noting that applications related to this matter are being updated in accordance with the Supreme Court’s ruling from November 4, 2022.
The update process is expected to be completed by March 31. Furthermore, the EC stressed the necessity of a timely transition to an Aadhaar-based payment system (ABPS), advocating for pension payments to be directly deposited into Aadhaar-linked bank accounts to enhance security and efficiency.