EPFO Adds 15 More Banks For Contribution Collection: How This Benefits EPF Members

The Employees’ Provident Fund Organisation (EPFO) has empanelled 15 more banks to process funds directly to EPFO. The Union Minister for Labour & Employment and Youth Affairs & Sports, Mansukh Mandaviya addressed the development as progress towards a ‘Naya Bharat’. With the agreement with 15 banks, the total number of banks empanelled reached 32. These banks are authorised to transfer EPFO collection received from employers directly to the EPFO.

EPFO is among the most prominent social security providers in India, managing provident funds and pensions for nearly eight crore active members and over 78 lakh pensioners.  

EPFO decided to add more banks in its November 2024 meeting. The Central Board of Trustees (CBT) approved increasing the number of banks. It approved empanelling all agency banks listed with the Reserve Bank of India (RBI) and also other scheduled commercial banks that are not RBI agency banks but have a collection share of a minimum of 0.2 per cent of the total EPFO collection.

Earlier, the criterion for a bank to get empanelled was a 0.50 per cent share of the total EPFO collection. 

How Will It Benefit EPF Members?

As per the government statement, Mandaviya said, “We are focused on providing Ease of Living for members and Ease of Doing Business for employers. With the continued support of our banking partners, employers, and members, we are determined to take strong strides toward realising the vision of a Viksit Bharat, while further strengthening our social security framework".

With the reduced processing time, EPF members’ accounts with these 15 banks can easily be verified as it will be done by the same bank. It will increase the overall efficiency and members will benefit due to hassle-free and improved processes.  

How Will It Benefit Employers?

Onboarding more banks to the empanelled bank list means that these added banks don’t need to transfer the funds collected from employers to an empanelled bank. Now, the newly empanelled banks can transfer the collected funds directly to EPFO, saving time and operational hassle. It will also reduce the task of name verification exercise of the EPF members’ bank accounts and increase efficiency.

How Will It Benefit EPFO?

The direct fund transfers to the EPFO would mean less processing time and cost. It will reduce the collection processing time from T+2 to T+1. The collection through non-empanelled banks, known as aggregator mode, takes T+2 days for all the validation processes and reaches the EPFO. Now, the collection from 15 more banks can directly reach EPFO on the next day (T+1). “This initiative will enhance both the Ease of Doing Business and the Ease of Providing Service”, as per the government statement.  

Which Banks Are Empanelled With EPFO?

According to the PTI report, the 15 added banks include HSBC Bank, Standard Chartered Bank, Federal Bank, IDFC First Bank, UCO Bank, Karnataka Bank, IndusInd Bank, Karur Vysya Bank, South Indian Bank, RBL Bank, City Union Bank, Tamilnad Mercantile Bank, Development Bank of Singapore, Development Credit Bank, and Bandhan Bank.

Already empanelled 17 banks include State Bank of India, HDFC Bank, Axis Bank, ICICI Bank, Kotak Mahindra Bank, Union Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Indian Overseas Bank, IDBI Bank, Indian Bank, Central Bank Of India, Bank of Maharashtra, Jammu & Kashmir Bank, Bank of India, and Yes Bank.