New Delhi, April 1 (NationPress) The EPFO on Tuesday formalized partnerships with 15 new banks, encompassing both public and private sectors, to facilitate direct payments amounting to nearly Rs 12,000 crore annually. This will allow employers maintaining accounts with these banks to pay their monthly contributions directly.

Previously, the EPFO had empanelled 17 banks, bringing the total to 32.

The agreements were signed in the presence of Union Labour & Employment Minister Dr. Mansukh Mandaviya and Union Minister of State for Labour & Employment, and MSMEs Shobha Karandlaje.

Mandaviya highlighted that with almost 8 crore active members and more than 78 lakh pensioners, the EPFO plays a crucial role in delivering social security benefits to millions.

He expressed satisfaction that the EPFO is currently offering an interest rate of 8.25 percent to its beneficiaries. The involvement of banks in service delivery is expected to further enhance the EPFO's efficiency and promote good governance.

Additionally, he mentioned that in the Financial Year 2024-25, the EPFO settled a remarkable over 6 crore claims, marking a 35 percent increase from the 4.45 crore claims settled in the previous fiscal year (2023-24).

Mandaviya also noted a significant advancement with the launch of the Centralised Pension Payment System.

"This system will aid over 78 lakh pensioners, allowing them to receive their pensions in any bank account nationwide, eliminating the prior requirement to have an account at a designated zonal bank," the Minister stated.

He also pointed out the significant reforms initiated by the EPFO recently. "The auto claim settlement process is a key reform that has expedited claim processing. Claims are now settled in just three days due to auto-processing. In FY 2024-25, we processed 2.34 crore claims under this system, which is a 160 percent increase from 89.52 lakh claims in 2023-24," he remarked.

The EPFO is recognized as one of the largest social security organizations globally, having collected over Rs. 3.41 lakh crore in contributions from employers through 1.25 crore electronic challan cum returns as of 20th March 2025.

The addition of new banks will ensure a seamless integration of EPFO collections and dues payments by employers, significantly reducing the necessity for an aggregator payment mechanism. This will enhance operational efficiency for both the EPFO and employers, facilitating quicker access to funds for investment as dues remitted through empanelled banks will be available for investment on T+1 day, rather than T+2 day through an aggregator. This change will also minimize costs associated with validating members' accounts held in non-empanelled banks.

This initiative will improve both the Ease of Doing Business and the Ease of Providing Service for employers, ultimately benefiting members by reducing delays in their contributions. Moreover, it will enable employers to directly communicate with these banks regarding any grievances related to the payment of dues.