EPFO Expands Banking Network, Strengthening Social Security Framework
ECONOMY & POLICY

EPFO Expands Banking Network, Strengthening Social Security Framework

The Employees’ Provident Fund Organisation (EPFO) has enhanced its banking network by empanelling 15 additional public and private sector banks, bringing the total number of authorised banks for EPFO contributions to 32. This move, formalised in the presence of Dr. Mansukh Mandaviya, Union Minister for Labour & Employment, Youth Affairs & Sports, and Sushri Shobha Karandlaje, Union Minister of State for Labour & Employment, will facilitate direct payment of nearly Rs 120 billion in annual contributions while providing greater accessibility for employers.

Dr. Mandaviya highlighted EPFO’s critical role in advancing the vision of a "Naya Bharat," noting that with nearly 8 crore active members and over 78 lakh pensioners, the organisation ensures social security for millions. He underscored EPFO’s ongoing evolution, citing the impact of EPFO 2.01, a robust IT system that has significantly improved claim settlements. In the Financial Year 2024–25, EPFO processed a record 6 crore claims, marking a 35% increase from the 4.45 crore claims settled in the previous year.

The minister announced that customer satisfaction has risen substantially and that EPFO is progressing towards EPFO 3.0, aiming to provide services as accessible and efficient as those of banks. A key milestone in this journey has been the introduction of the Centralised Pension Payment System, which enables pensioners to receive payments in any bank account across the country, eliminating the earlier requirement of holding accounts in designated zonal banks.

Dr. Mandaviya also pointed out that significant reforms, such as the auto-claim settlement process, have drastically improved claim processing speeds. Claims are now being settled in just three days, with 2.34 crore claims processed under this system in FY 2024–25—representing a 160% increase from the 89.52 lakh claims processed in 2023–24. He also noted that EPFO is offering an interest rate of 8.25% to its beneficiaries.

EPFO’s expanded banking network will bring seamless integration of collections and payments, reducing the dependency on aggregator payment mechanisms for employers. This will enhance operational efficiency, allowing remitted dues to be available for investment on a T+1 basis, as opposed to T+2 through aggregator platforms. It will also streamline the verification process for EPF members, accelerating the validation of bank accounts and ensuring quicker claim settlements.

Looking forward, Dr. Mandaviya reaffirmed EPFO’s commitment to continuous improvement, focusing on enhancing both the Ease of Living for members and the Ease of Doing Business for employers. The empanelment of additional banks is expected to improve efficiency, reduce delays in remittance and claim processing, and strengthen EPFO’s governance framework.

Shri Ramesh Krishnamurthi, Central PF Commissioner, along with senior officials from EPFO, the Ministry of Labour & Employment, and representatives from empanelled banks, attended the event

The Employees’ Provident Fund Organisation (EPFO) has enhanced its banking network by empanelling 15 additional public and private sector banks, bringing the total number of authorised banks for EPFO contributions to 32. This move, formalised in the presence of Dr. Mansukh Mandaviya, Union Minister for Labour & Employment, Youth Affairs & Sports, and Sushri Shobha Karandlaje, Union Minister of State for Labour & Employment, will facilitate direct payment of nearly Rs 120 billion in annual contributions while providing greater accessibility for employers. Dr. Mandaviya highlighted EPFO’s critical role in advancing the vision of a Naya Bharat, noting that with nearly 8 crore active members and over 78 lakh pensioners, the organisation ensures social security for millions. He underscored EPFO’s ongoing evolution, citing the impact of EPFO 2.01, a robust IT system that has significantly improved claim settlements. In the Financial Year 2024–25, EPFO processed a record 6 crore claims, marking a 35% increase from the 4.45 crore claims settled in the previous year. The minister announced that customer satisfaction has risen substantially and that EPFO is progressing towards EPFO 3.0, aiming to provide services as accessible and efficient as those of banks. A key milestone in this journey has been the introduction of the Centralised Pension Payment System, which enables pensioners to receive payments in any bank account across the country, eliminating the earlier requirement of holding accounts in designated zonal banks. Dr. Mandaviya also pointed out that significant reforms, such as the auto-claim settlement process, have drastically improved claim processing speeds. Claims are now being settled in just three days, with 2.34 crore claims processed under this system in FY 2024–25—representing a 160% increase from the 89.52 lakh claims processed in 2023–24. He also noted that EPFO is offering an interest rate of 8.25% to its beneficiaries. EPFO’s expanded banking network will bring seamless integration of collections and payments, reducing the dependency on aggregator payment mechanisms for employers. This will enhance operational efficiency, allowing remitted dues to be available for investment on a T+1 basis, as opposed to T+2 through aggregator platforms. It will also streamline the verification process for EPF members, accelerating the validation of bank accounts and ensuring quicker claim settlements. Looking forward, Dr. Mandaviya reaffirmed EPFO’s commitment to continuous improvement, focusing on enhancing both the Ease of Living for members and the Ease of Doing Business for employers. The empanelment of additional banks is expected to improve efficiency, reduce delays in remittance and claim processing, and strengthen EPFO’s governance framework. Shri Ramesh Krishnamurthi, Central PF Commissioner, along with senior officials from EPFO, the Ministry of Labour & Employment, and representatives from empanelled banks, attended the event

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