EPFO Update: There is major news for EPFO members. EPFO (Employees’ Provident Fund Organization) has partnered with 15 more public and private sector banks to enhance its service delivery and simplify payment processes. This announcement was made during an event in New Delhi on Tuesday, attended by Dr. Mansukh Mandaviya, the Minister of Labor and Employment, Youth Affairs, and Sports. With the addition of these banks, EPFO will facilitate direct payments totaling approximately Rs 12,000 crore annually, benefiting employers whose accounts are held at these institutions.
Previously, EPFO had already included 17 banks in its network, bringing the total to 32. This expansion allows employers to directly access and pay their monthly contributions as mandated by the EPFO Act.
Dr. Mandaviya highlighted EPFO’s vital role in the nation’s development, stating that organizations like EPFO are crucial to achieving the vision of “New India.” With around 8 crore active members and over 78 lakh pensioners receiving social security benefits, EPFO is making a significant impact. He also mentioned the recent launch of the EPFO 2.01 system, which has streamlined the claim settlement process, resulting in over 6 crore claims settled in the financial year 2024-25—an increase of 35 percent compared to the previous year’s 4.45 crore claims.
Furthermore, Dr. Mandaviya noted a marked improvement in customer satisfaction at EPFO, and the organization is now focused on rolling out EPFO 3.0, which aims to enhance accessibility and efficiency.
A key development is the new centralized pension payment system, enabling more than 78 lakh pensioners to receive their pensions in any bank account. This change eliminates the previous requirement for pensioners to hold accounts in specific regional banks.
Furthermore, the EPFO has introduced an automatic claim settlement process, allowing claims to be resolved in just three days. During the financial year 2024-25, a total of 2.34 crore claims were processed through this system, marking a 160 percent increase compared to the 89.52 lakh claims settled in 2023-24.
Interest Rate Increase and Bank Participation
The minister also expressed satisfaction with the EPFO offering an interest rate of 8.25 percent to its members. The participation of banks is expected to enhance the efficiency of EPFO’s service delivery and strengthen governance.
List of New Banks
The newly added banks include HSBC Bank, Standard Chartered Bank, Federal Bank, IndusInd Bank, Karur Vysya Bank, RBL Bank, South Indian Bank, City Union Bank, IDFC First Bank, UCO Bank, Karnataka Bank, Development Bank of Singapore, Tamilnad Mercantile Bank, Development Credit Bank, and Bandhan Bank. This initiative aims to further enhance EPFO’s service delivery, ensuring better and quicker services for millions of Indians.