EPFO Expands Bank Network to 32, Boosting Social Security and Employer Ease

According to the Minister, in FY 2024-25, EPFO settled over 6 crore claims, a 35% surge from the 4.45 crore claims settled in FY 2023-24.

In a major stride toward enhancing India's social security infrastructure and promoting ease of doing business, the Employees' Provident Fund Organisation (EPFO) entered into agreements with 15 additional public and private sector banks in New Delhi. The event, held 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 and MSMEs, marked a significant expansion of EPFO's banking network, raising the total number of empanelled banks to 32.

Strengthening EPFO's Collection and Remittance System

The inclusion of these 15 new banks is expected to enable direct payments of nearly ₹12,000 crore annually, offering a smoother remittance process for employers. The empanelled banks now include a wider spectrum of both public and private sector players, allowing employers, especially those already maintaining accounts with these banks, direct access to EPFO's services. This move is set to significantly streamline the payment of monthly contributions by eliminating the need for aggregator-based mechanisms and reducing associated delays.

Previously, EPFO had authorized 17 banks for direct contribution collection. With this expansion effective from April 1, 2025, employers now benefit from increased flexibility, improved transactional efficiency, and reduced grievance redressal time as they can directly coordinate with their existing banks.

Digital Transformation: EPFO 2.0 and Beyond

Highlighting EPFO's ongoing digital transformation, Union Minister Dr. Mandaviya praised the rollout of EPFO 2.0, a powerful IT system that has significantly enhanced service delivery, particularly in claim settlement efficiency. According to the Minister, in FY 2024-25, EPFO settled over 6 crore claims, a 35% surge from the 4.45 crore claims settled in FY 2023-24.

A standout reform under EPFO 2.0 is the auto claim settlement process, which has drastically reduced processing times. The system processed 2.34 crore claims in FY 2024-25—an impressive 160% increase over 89.52 lakh claims the previous year. With many claims now settled within just three days, this initiative marks a significant improvement in beneficiary satisfaction.

Customer feedback shows a notable uptick in satisfaction levels, and EPFO is already working toward the next version, EPFO 3.0, aiming to match the service quality and accessibility of leading banking institutions.

Centralized Pension Payment System: A Game Changer

Another transformative step is the rollout of the Centralized Pension Payment System (CPPS). This upgrade allows the over 78 lakh pensioners under EPFO to receive their pension payments in any bank account across the country, breaking the earlier constraint that required pensioners to have accounts with specific zonal banks.

"This initiative aligns with our vision of providing Ease of Living to our members," said Dr. Mandaviya, adding that it marks a crucial milestone in creating a more inclusive and responsive social security system.

Financial Performance and Strategic Vision

In FY 2024-25, EPFO has already recorded a collection of over ₹3.41 lakh crore in contributions from employers through 1.25 crore electronic challan cum returns (ECRs) as of March 20, 2025. This represents not just a financial achievement but also a testament to the trust that over 8 crore active members and 78 lakh pensioners place in the institution.

The expansion of the empanelled banks also follows the decision made during the 236th Meeting of the Central Board of Trustees (CBT) held on November 30, 2024. The board approved the empanelment of all RBI-listed agency banks and scheduled commercial banks with at least 0.20% of total EPFO collection share, as part of its effort to broaden the base of banks authorized to collect contributions.

Dr. Mandaviya also reiterated that EPFO is currently offering an attractive interest rate of 8.25%, reaffirming its financial prudence and commitment to maximizing returns for its members.

Key Benefits of the Expanded Banking Network

The empanelment of 15 additional banks delivers a broad spectrum of benefits for employers, employees, and the EPFO itself:

• Faster Access to Funds: Dues remitted via empanelled banks will now be available for investment on T+1 day (transaction day + 1), compared to T+2 days through aggregator platforms.

• Cost Efficiency: EPFO will incur lower costs for member account name validation since these banks can verify accounts directly.

• Better Integration: Employers can now interact directly with their banks for payment grievances, eliminating intermediaries.

• Improved Member Experience: Bank accounts seeded by members will be verified more quickly, facilitating faster claim settlements and reduced errors.

Looking Ahead: Toward a Viksit Bharat

Dr. Mandaviya concluded by expressing confidence in the path ahead. "We are committed to building a Viksit Bharat (Developed India) and strengthening the social security net that protects our workforce. Through continuous reforms, smart digital upgrades, and active collaboration with our banking partners, we aim to make EPFO a globally benchmarked institution," he said.

Shri Ramesh Krishnamurthi, Central PF Commissioner, along with MDs, CEOs, and senior officers from partner banks and the Ministry of Labour & Employment, also attended the signing ceremony, signaling a collective effort toward nation-building.

This initiative not only ensures Ease of Doing Business for employers but also improves the Ease of Providing Service for EPFO, ultimately benefitting millions of working Indians. As India accelerates its journey toward economic transformation, institutions like EPFO continue to lay the foundation for inclusive growth and financial resilience.