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EPFO signs pact with five banks for collection of remittances

The Employees Provident Fund Organisation (EPFO) on Wednesday signed an agreement with five banks — Bank of Baroda, ICICI Bank,…

EPFO signs pact with five banks for collection of remittances

Bandaru Dattatreya (Photo: Facebook)

The Employees Provident Fund Organisation (EPFO) on Wednesday signed an agreement with five banks — Bank of Baroda, ICICI Bank, HDFC Bank, Axis Bank and Kotak Mahindra Bank — for the collection of remittances, as well as payments to beneficiaries at zero transaction charges.

A collection of EPF dues was earlier done through Punjab National Bank, Allahabad Bank, Indian Bank, Union Bank of India in addition to State Bank of India through direct online mode.

With Wednesday's agreement in the presence of Labour Minister Bandaru Dattatreya, employers having bank accounts with the five new banks may deposit EPF dues directly in EPFO’s account using internet banking on real-time basis instead of going through the aggregator mode. 

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While the employers will benefit from the agreement through deposit of their EPF dues in a hassle-free, anywhere, anytime manner, the EPF subscribers will benefit from direct payments of their EPF money into their bank accounts.

The minister said the EPFO will collect dues from employers and make payment to beneficiaries through multiple-banks in place of the erstwhile single banking system. He said the decision to engage private sector banks in the collection of
EPF contributions was taken at the 216th meeting of the EPF Central Board of Trustees meeting held on 30 March 2017.

Dattatreya said EPFO now has a corpus of Rs 12 lakh crore.  It has a contributing membership of 4.5 crore employees and about 20 crore accounts are serviced by EPFO.  The EPFO collects around Rs 75,000 crore annually from the establishments covered under the Act and settles about 1.16 crore claims in a year, disbursing about Rs 54,000 crore annually.
 

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