New Delhi: The Employees’ Provident Fund Organisation (EPFO) has expanded its banking network by empanelling 15 additional public and private sector banks, bringing the total number of authorized banks to 32. This move is expected to streamline the collection of EPFO contributions and improve service delivery for employers and members alike. The newly empanelled banks will enable direct payments of nearly Rs. 12,000 crore in annual collections and provide employers with greater flexibility in managing their contributions.
The announcement was made during a ceremony in New Delhi, attended by Union Minister for Labour and Employment Dr Mansukh Mandaviya and Union Minister of State for Labour and Employment Shobha Karandlaje. “This expansion will provide employers more choices for remitting their EPFO contributions, ultimately reducing delays and improving operational efficiency,” said Dr. Mandaviya.
Expanding Accessibility for Employers and Members
As of April 2025, the empanelment of these 15 banks marks a significant leap in EPFO’s efforts to enhance accessibility and streamline the process for nearly 8 crore active members and over 78 lakh pensioners. “The participation of these new banks in the service delivery will boost efficiency and contribute to good governance, making EPFO more accessible and efficient for both employers and employees,” Dr. Mandaviya added.
The expansion is part of the Employees’ Provident Fund Organisation’s broader strategy to simplify operations and ensure faster processing of contributions. Earlier, EPFO had already empanelled 17 banks, taking the total number to 32, which will allow employers greater convenience in making monthly payments. The seamless integration of EPFO collections with the empanelled banks is expected to reduce the reliance on aggregator mechanisms and lower transactional delays.
EPFO 2.0 and Future Focus on Digital Transformation
Dr. Mandaviya also highlighted the progress made under EPFO 2.0, which has helped in significantly improving the settlement of claims. “In FY 2024-25, EPFO settled over 6 crore claims, a 35% increase compared to the previous year, showcasing the system’s growing efficiency,” he stated.
Moreover, the Minister pointed out the introduction of auto claim settlement, which has further reduced processing time. “With the auto-processing feature, claims are now being settled in just three days. In FY 2024-25, we settled 2.34 crore claims under this system, a 160% increase from the 89.52 lakh claims in 2023-24,” Dr. Mandaviya added. These technological advancements are central to the vision of making EPFO as accessible and efficient as a banking institution, he added.
Streamlining Pension and Contribution Payments
A key reform announced during the event was the introduction of the Centralized Pension Payment System. “This system will allow pensioners to receive their pensions in any bank account across the country, without the need to have an account in a specific zonal bank,” said Dr. Mandaviya. This change is expected to significantly ease the payment process for over 78 lakh pensioners across India.
Financial Benefits for EPFO and Employers
The empanelment of additional banks will also help EPFO reduce costs associated with validating member accounts. Due to the direct collaboration with these banks, contributions made through these entities will be available for investment on the T+1 day instead of T+2 days through aggregators. This will help the Employees’ Provident Fund Organisation manage its funds more effectively and will also reduce operational costs.
Additionally, EPF members will benefit as their bank accounts in these newly empanelled banks will be verified faster, improving the overall speed of contribution processing and member account management.
The Road Ahead
Looking to the future, Dr Mandaviya expressed confidence in EPFO’s continued evolution. “We are committed to improving both the Ease of Living for our members and the Ease of Doing Business for employers,” he said. The successful integration of more banks into the EPFO network will also provide significant operational improvements and make the process smoother for both employers and employees.
EPFO, one of the largest social security organizations globally, has already collected over Rs. 3.41 lakh crore in contributions for FY 2024-25 through 1.25 crore electronic challan cum returns (ECRs). This initiative is expected to further improve the efficiency of EPFO’s service delivery, contributing to better governance and greater satisfaction for both employers and beneficiaries.
The ceremony was attended by senior officials, including Ramesh Krishnamurthi, Central Provident Fund Commissioner, and representatives from the empanelled banks.
– global bihari bureau
