The Employees’ Provident Fund Organisation (EPFO) on 5 July 2017 inked an agreement with four private banks and Bank of Baroda for collection of provident fund dues from employers and payments to its subscribers.
It is the first time that the EPFO has tied up with private banks. These four banks are ICICI Bank, HDFC Bank, Axis Bank and Kotak Mahindra Bank.
Before, only State Bank of India was authorised to collect contributions from employers and make payment to employees.
The agreement will help the EPFO save about Rs 300 crore annually as the five banks have agreed to zero transaction charges.
Bandaru Dattatreya, Union Labour and Employment Minister, stated that “With today’s agreement, we have tied up with 10 banks now to collect provident fund contribution and pay dues to the workers. EPFO settles around 1.16 crore claims every year and collects Rs 75000 crore annually from establishments under the EPF Act.”
In December 2016, the EPFO had tied up with five other banks, Punjab National Bank, Allahabad Bank, Indian Bank and Union Bank of India, for online collection of dues.
In addition, the EPFO is also in talks with seven more banks to sign a similar agreement. These banks are IDBI Bank, Bank of India, Corporation Bank, Indian Overseas Bank, Canara Bank, Central Bank of India and Bank of Maharashtra.
About Employees’ Provident Fund Organisation
• The Employees' Provident Fund Organisation is an organization tasked to assist the Central Board of Trustees, a statutory body formed by the Employees' Provident Fund and Miscellaneous Provisions Act, 1952.
• The organisation is under the administrative control of the Ministry of Labour and Employment, Government of India.
• It assists the Central Board in administering a compulsory contributory Provident Fund Scheme, a Pension Scheme and an Insurance Scheme for the workforce engaged in the organized sector in India.
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