The current decentralized system of EPFO for making payment to its beneficiaries entails higher cost of transactions, delays in re credits in case of failed transaction
The Central Board (EPF) held a meeting under the chairmanship of Santosh Gangwar, Minister of state (independent charge) for Labour and Employment in New Delhi on Thursday. Some major decisions were taken in the board meeting. One of the most significant ones included the transfer of money to PF accounts using the national payment corporation of India (NPCI) so that the EPFO can transfer funds on the same day to the beneficiaries.
The Five Things That You Need To Know About The EPFO’s Central Board Meeting
1. The current decentralized system of EPFO for making payment to its beneficiaries entails higher cost of transactions, delays in re credits in case of failed transaction and does not provide for aadhaar-enabled payments. Hence, the EPFO’s central board of trustees has approved a proposal for centralised payment system using National Payments Corporation of India (NPCI) platform. The new system would enable EPFO to transfer funds on same day to the beneficiaries through NPCI platform.
2. The central board of EPFO has started investing in equity traded funds (ETFs) from August 2015. Retirement fund body EPFO on Thursday approved a proposal for crediting exchange traded fund (ETF) units to provident fund accounts of its 4.5 crore members. Employees’ Provident Fund Organisation (EPFO) subscribers would be able to see ETF units in their PF accounts by March- end next year.
3. The board took note of online aadhaar-verified UAN allotment to any citizen at the unified portal.
4. The board also took note of the introduction of online request functionality to EPF subscribers for correction in name, date of birth and gender. These were among the recent IT-based initiatives taken by the EPFO for better services to its stakeholders.
5. The central board also took note of the requests from ineligible establishments for waiver of damages, which were earlier rejected by the EPFO.
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