(MENAFN- KNN India)
New Delhi, Dec 26 (KNN) The Union labour Ministry has initiated discussions with the Reserve bank of India and various banks to introduce new services for Employees' Provident Fund Organisation subscribers, including ATM access and e-wallet capabilities.
This development comes as part of a comprehensive overhaul of EPFO's operations and technology infrastructure, aimed at addressing long-standing concerns about claim settlements and pension disbursements.
The retirement fund manager, which serves approximately 70 million subscribers in India's formal sector, plans to implement these new features by January 2025.
The proposed system will allow subscribers to withdraw their provident fund savings up to a specified limit using EPFO account-linked ATM cards, expanding beyond the current auto-settlement system that only permits direct bank account transfers.
Labour Secretary Sumita Dawra emphasised the ministry's commitment to developing a world-class information technology system comparable to the banking sector.
The modernisation initiative encompasses several key reforms, including centralised claim settlements, automated processing, streamlined pension disbursements, and a restructured electronic challan-cum-receipt system.
Recent improvements implemented over the past six months have already enhanced accessibility for subscribers.
Members can now access their provident fund documents through Digilocker, file claims via the Umang app, and pensioners can digitally submit their annual life certificates, eliminating the need for physical bank visits.
The EPFO currently offers an interest rate of 8.25 per cent for FY24, a crucial benchmark for India's salaried middle class.
Starting in 2025, the EPFO will also transition to a centralised pension payment system, enabling retirees to receive monthly payments from any bank or branch nationwide.
This upgrade will benefit approximately 7.8 million subscribers of the Employees' Pension Scheme 1995, eliminating the need for physical transfer of payment orders when beneficiaries relocate or change banks.
Trade unions, while welcoming these technological advances, have called for additional reforms.
TN Karumalaiyan, general secretary of the Centre for Indian Trade Unions, specifically highlighted the need to revise the current wage ceiling of Rs 15,000, which determines contribution limits for both employers and employees under the mandatory 12 per cent provident fund scheme.
(KNN Bureau)
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