Major Overhaul in EPFO Services: 15 More Banks Added, Auto Claim Settlement Introduced
New Delhi: The Employees' Provident Fund Organization (EPFO) has introduced a series of reforms aimed at streamlining pension disbursement and claim settlement processes. With the addition of 15 new banks, the total number of empanelled banks has now reached 32, making transactions faster and more convenient for millions of EPFO members and pensioners.
To enhance its service delivery, EPFO has partnered with 15 additional public and private banks, ensuring direct payments of an estimated ₹12,000 crore annually. This move is expected to simplify payment processes for employers managing contributions under the EPFO Act. The announcement was made at an event in New Delhi, attended by Dr. Mansukh Mandaviya, Minister of Labor & Employment, Youth Affairs, and Sports.
Previously, EPFO had empanelled 17 banks, bringing the total to 32 after this latest expansion. Employers now have direct access to banking facilities, making it easier for them to deposit monthly contributions efficiently.
During his address, Dr. Mandaviya highlighted EPFO’s crucial role in the country’s economic progress. The organization currently serves around 8 crore active members and over 78 lakh pensioners, providing essential social security benefits.
With the recent introduction of EPFO 2.01, the claim settlement process has become significantly faster. In the financial year 2024-25, EPFO processed more than 6 crore claims, marking a 35% increase compared to 4.45 crore claims in 2023-24.
Additionally, EPFO is now working on EPFO 3.0, an upgraded system that aims to further enhance accessibility and efficiency in service delivery.
One of the biggest developments is the launch of a centralized pension payment system. Previously, pensioners were required to have accounts with specific regional banks. However, under the new system, 78 lakh pensioners can now receive their pensions in any bank account of their choice, significantly improving convenience.
Furthermore, the introduction of an automated claim settlement process has drastically reduced the time taken for claims to be processed. Now, claims are being settled in just three days. In 2024-25, around 2.34 crore claims were settled under this system, reflecting a 160% increase from 89.52 lakh claims in 2023-24.
Another major highlight is that EPFO is offering an 8.25% interest rate to its beneficiaries, ensuring higher returns for employees.
To further strengthen financial accessibility, the following 15 new banks have been added to EPFO’s banking network:
HSBC Bank
Standard Chartered Bank
Federal Bank
IndusInd Bank
Karur Vysya Bank
RBL Bank
South Indian Bank
City Union Bank
IDFC First Bank
UCO Bank
Karnataka Bank
Development Bank of Singapore
Tamilnad Mercantile Bank
Development Credit Bank
Bandhan Bank
With these groundbreaking changes, EPFO aims to provide faster and more transparent services to its millions of beneficiaries. The expansion of banking partnerships, automation of claim settlements, and higher interest rates indicate a stronger, more efficient EPFO, ensuring a seamless experience for members across the country.
