Government Expands EPFO Banking Network: 8.78 Crore Beneficiaries to Gain

In a major development, the Employees’ Provident Fund Organization (EPFO) has expanded its banking network by partnering with 15 new public and private sector banks. This agreement, signed in the presence of Union Minister of Labour and Employment Dr. Mansukh Mandaviya and Minister of State Shobha Karandlaje, aims to enhance the efficiency and accessibility of EPFO services.

Key Highlights:

• The addition of 15 new banks will facilitate direct payments amounting to Rs. 12,000 crore annually, benefiting employers and account holders alike.
• With this expansion, the total number of banks associated with EPFO has increased from 17 to 32.

Faster Claim Settlements

Dr. Mandaviya emphasized that EPFO currently provides social security to over 8 crore active members and 78 lakh pensioners. He further noted that significant IT advancements have strengthened EPFO’s operations under the EPFO 2.0 initiative, leading to faster claim settlements.

• In the financial year 2024-25, EPFO processed over 6 crore claims—35% higher than the previous year.
• The introduction of an "auto-claim settlement process" has reduced claim processing time to just three days.
• A total of 2.34 crore claims were settled via auto-processing in 2024-25, marking a 160% increase from the previous year.

Centralized Pension Payment System

The implementation of the "Centralized Pension Payment System" is another milestone. This system enables more than 78 lakh pensioners to receive their pensions in any bank account of their choice, eliminating the earlier restriction of maintaining an account with designated zonal banks.

Benefits of Adding New Banks

• Employers can now deposit monthly contributions with greater ease.
• Payments will be available for investment in T+1 day instead of T+2.
• The cost of verifying member details in non-contracted banks will be reduced.
• Verification of EPFO members’ bank accounts will be expedited, ensuring faster payments.

EPFO’s Financial Performance

EPFO collected Rs. 3.41 lakh crore in contributions during the financial year 2024-25, with 1.25 crore electronic challan-cum-returns (ECRs) processed by March 20, 2025.

Future of EPFO: Towards EPFO 3.0

Dr. Mandaviya stated that EPFO is progressing towards a more accessible and efficient system akin to traditional banking services. He reiterated the government’s commitment to enhancing the Ease of Living for members and Ease of Doing Business for employers.

The signing ceremony was attended by EPFO’s Central PF Commissioner Ramesh Krishnamurthy, top executives of banking institutions, and senior officials from the Ministry of Labour and EPFO.

This expansion marks a significant step in making EPFO services more efficient, transparent, and accessible for millions of beneficiaries across the country.