Lok Sabha Question No. 2365 (UNSTARRED), answered on 2017-07-31
Subject: EPFO’s Tie-up with Banks
Ministry: LABOUR AND EMPLOYMENT
Asked by: PRATHAP SIMHA, SHOBHA KARANDLAJE

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

UNSTARRED QUESTION NO. 2365 TO BE ANSWERED ON 31.07.2017

## EPFO'S TIE-UP WITH BANKS

2365. SHRI PRATHAP SIMHA: KUMARI SHOBHA KARANDLAJE:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a)whether EPFO has entered into agreement for collection of EPF dues from employers and payment to beneficiaries as well through multiple-banks, in place of erstwhile single banking system, if so, the details thereof; (b)whether EPFO is one of the largest social security providers with a corpus of rupees 12 lakh crore and it has a contributing membership of 4.5 crore and services about 20 crore accounts and if so, the details thereof; thousand crores annually from the establishments covered under the Act
- (c)whether it is a fact that EPFO collects around rupees Seventy-five and if so, the details thereof;
- (d)whether Trade Unions have demanded retirement schemes for workers in the  unorganised  sectors,  who  constitute  more  than  90  per  cent  of  the country's workforce and if so, the details thereof and the action taken by the Government thereon; and
- (e)whether the Government has reviewed the labour welfare initiatives and the new initiatives proposed in the context of evolving economic, political and social conditions and if so, the details thereof?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI BANDARU DATTATREYA)

- (a): Yes, Madam. Employees' Provident Fund Organisation (EPFO) has tied up/entered into arrangement agreement with ten banks to collect EPFO dues and  to  make  payments  of  Provident  Fund  (PF)  withdrawals,  pension  and insurance to EPFO beneficiaries. These banks are State Bank of India, Punjab National Bank, Indian Bank, Allahabad Bank,  Union Bank of India, Bank  of Baroda, HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank.

The  main  objective  of  the  multi  banking  arrangement  is  to  provide more options to the employers to remit the Employees' Provident Fund (EPF) contribution directly from their bank accounts.  This will not only make them cost  effective  but  also  ensure  real  time  transfer  of  funds  through  net banking.

- (b): As on 31.03.2016, EPFO has a corpus of Rs.10,43,581.47 crores with contributing membership of 3.76 crores and 17.44 crores annual accounts.
- (c): As  per  Balance  Sheet  for  the  financial  year  2015-16,  EPFO's  total collection is 1,04,651.83 crores. Scheme-wise details are as under:

EPF Scheme A/c  :      Rs.70388.70 crores

EPS Scheme A/c  :      Rs.29249.60 crores

EDLI Scheme A/c:     Rs.1245.97 crores

EPF Administration A/c:      Rs.3648.98 crores

EDLI Administration A/c:     Rs. 118.58 crores

- (d): In  order  to  provide  social  security  benefits  to  the  workers  in  the unorganised sector, the Government has enacted the Unorganised Workers' Social  Security  Act,  2008.  The  said  Act  stipulates  formulation  of  suitable welfare schemes for unorganised workers on matters relating to: (i) life and disability cover, (ii) health and maternity benefits, (iii) old age protection and (iv)  any  other  benefit  as  may  be  determined  by  the  Central  Government through the National Social Security Board. In this regard, various schemes have been formulated by the line Ministries at the Centre to provide social security cover to the unorganized workers.
- (e): The  review  of  various  welfare  initiatives  is  an  ongoing  process  like revision in the threshold limit for coverage under the Payment of Bonus Act, 1965 and  Employees' State Insurance Act, 1948, enhancement of the benefit payable under the Employees' Deposit Linked Insurance Scheme,  revision of minimum wages in the Central sphere, enhancement of paid maternity leave, etc.

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