Source | Financial Express
EPFO beneficiaries will now get payments through electronic or digital fund transfer system. The Ministry of Labour & Employment vide notification dated 4th May 2017 has provided for electronic or digital fund transfer/payment of EPF benefits, pension disbursement and insurance claim. For this purpose, suitable amendments have been made in all the three social security schemes administered by EPFO.
Such move is likely to benefit 4.5 crore EPF subscribers and around than 54 lakh pensioners. Now, payments will be made to the beneficiaries through electronic or digital fund transfer system only, ensuring quick transfer of funds, easier tracking and reconciliation thereof.
Recently, the Labour Ministry amended the social security schemes run by the retirement fund body EPFO to enable it to make all payments — pension, provident fund and insurance — to the members electronically. “The Labour Ministry has amended the schemes run by EPFO by a notification. This will enable the Employees’ Provident Fund Organisation to make all payments like EPF and pension through digital mode.”
It was provided in the schemes run by EPFO that the body can make payments to its subscribers through various modes like money order, cheques or electronically.
The official also informed that the decision to go 100 per cent digital for payments was taken after some complaints were received for ensuring complete transparency. EPFO has over four crore subscribers and receives 1 crore claims every year, including that of EPF withdrawal, pension fixation, and insurance claims.