EPFO expands banking network; over 6 crore claims settled in 2024

The Employees' Provident Fund Organisation (EPFO) has entered into agreements with 15 additional Public/Private Sector Banks to enable direct payment of nearly Rs. 12,000 Crore in annual collections and enable direct access to employers who maintain their accounts with these banks. 

For enabling employers covered under the Act to pay their monthly contributions, EPFO has already empanelled 17 banks, taking the total to 32.

Union Minister of Labour & Employment, Dr. Mansukh Mandaviya stated that the country's progress towards a "Naya Bharat" is being significantly supported by institutions like the EPFO, which plays a crucial role in shaping the nation's future. With nearly 8 crore active members and more than 78 lakh pensioners, EPFO provides benefits that ensure social security for millions, he added.

In the Financial Year 2024-25, EPFO settled record over 6 crore claims, a 35% increase compared to the 4.45 crore claims settled in the previous year (2023-24).

EPFO is actively working on evolving towards EPFO 3.0 to make it as accessible and efficient as banks. He said that a significant milestone was also marked with the introduction of the Centralized Pension Payment System. 

"This system will benefit over 78 lakh pensioners, enabling them to receive their pensions in any bank account across the country. Previously, pensioners were required to have an account in a specific zonal bank, this compulsion has now been removed," Union Minister explained.

Significant Reforms

EPFO has introduced recently. “Auto claim settlement process is a major reform which has improved claim processing speed. With auto-processing, 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", Union Minister said.