EPFO to Provide Bank-Like Facilities by Mid-2025: Major IT System Upgrades Underway

The Employees' Provident Fund Organization (EPFO) is on track to introduce banking-like services for its members, resolving persistent issues with fund withdrawals and account discrepancies. Here's a detailed overview of the upcoming changes and benefits for EPFO members.

Key Updates in EPFO Services

1. Centralized IT System 2.0:

   • All employee records will be centralized by January 2025.
   • This update aims to eliminate errors in account details, such as name mismatches, outdated Aadhaar or bank information, and issues related to multiple Universal Account Numbers (UAN).
   • Faster detection and correction of errors will make fund withdrawals seamless.

2. Bank-Like Functionality by June 2025:

   • With the introduction of IT System 3.0, EPFO will adopt banking features, including emergency fund withdrawals and enhanced grievance redressal mechanisms.
   • Members will also gain access to services through a dedicated app, ensuring greater convenience and efficiency.

3. Error-Free Withdrawals:

   • Problems caused by regional office-specific record-keeping will no longer exist.
   • Members can expect smoother fund transfers when switching jobs or merging old accounts with new UANs.

Benefits of the Banking-Like System

• Emergency Fund Access: Members will be allowed to withdraw a fixed amount during emergencies, similar to overdraft services in banks.
• Streamlined Processes: A single, centralized system will reduce processing times for withdrawals and account updates.
• Improved Grievance Redressal: IT System 3.0 will strengthen EPFO’s ability to resolve member complaints promptly.

Employment Growth and Unemployment Reduction

Union Minister for Labor and Employment, Dr. Mansukh Mandaviya, highlighted significant achievements in employment during the current government’s tenure:

1. Employment Opportunities:

   • Over 17.19 crore additional jobs were created between 2014-2024.
   • In FY 2023-24 alone, 4.6 crore new jobs were generated across India.

2. Youth Employment Rate:

   • Increased from 31.4% in 2017-18 to 41.7% in 2023-24.

3. Unemployment Decline:

   • Reduced from 17.8% to 10.2% in the same period.

4. EPFO Data Insights:

   • In the past seven years, 4.7 crore young individuals (aged 18-28) secured jobs across the country.

Conclusion

EPFO's modernization initiative aims to make fund management effortless and member-centric. With centralized systems and banking-like features, EPFO is set to provide faster, more reliable services to its members by mid-2025. Additionally, the government's efforts in employment creation and unemployment reduction underline its commitment to economic and social development.

Stay updated with EPFO announcements to make the most of these upcoming facilities.