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PF Dues: EPFO will be able to save Rs 125 crore from the alliance with five banks for recovery
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| PF Dues: EPFO will be able to save Rs 125 crore from the alliance with five banks for recovery |
News & Business
Employees Provident Fund Organization (EPFO) has entered into an agreement with five banks for the collection of PF dues and provident fund withdrawal, pension and insurance.Bank of Baroda, ICICI Bank, HDFC Bank, Axis Bank and Kotak Mahindra Bank will help the EPFO save about 125 crore annually. Also, it will provide payment benefits to the shareholders with the expansion in investment.
Now the employers who have accounts in these banks can submit the outstanding PF internet banking directly into the immediate EPFO account. With no such arrangement, the EPFO had to collect the dues and the payment was made through the aggregator. It costs about 12 rupees for each transaction.
Central Provident Fund Commissioner VP Joy said, in the accounts of the members, the cost of transaction was Rs 350 crores annually in the form of transaction fees. Apart from SBI, now PNB, Allahabad Bank, Indian Bank, Union Bank of India have started collecting online dues. This has reduced the cost to 175 crore rupees. He said that after the agreement with five more banks, the fee will be reduced to Rs 50 crore annually. The EPFO is negotiating with seven more banks for this purpose. Alliances with these banks will be profitable.
These seven banks are IDBI Bank, Bank of India, Corporation Bank, Indian Overseas Bank, Canara Bank, Central Bank of India and Bank of Maharashtra. Joey said, the talks with these banks are continuing. After the alliance with them, the transaction fee will remain for a few million years. On this occasion, Labor Minister Bandaru Dattatreya Lay said that the EPFO can consider reducing administrative fees for further reduction in transaction fee. SBI has been the sole banker of EPFO since 1952. EPFO came into existence in 1952. Later, the EPFO allowed employers to put PF contribution through their bank account in their SBI account.