Introduction: The Employees’ Provident Fund Organization (EPFO), under the Ministry of Labour & Employment, Government of India, has issued a significant update regarding the payment of EPF benefits to subscribers’ payment bank accounts. This update is crucial for both EPF subscribers and authorities involved in EPF disbursements.
Detailed Analysis: In a circular dated 01-11-2023, EPFO clarified and expanded the list of payment banks eligible for the disbursement of EPF benefits. The circular refers to a previous circular dated 06.05.2021, which had originally included India Post Payments Bank and Fino Payments Bank in the second schedule to the Reserve Bank of India Act, 1934. These inclusions allowed EPF payments to be settled in these payment banks.
However, the recent development highlights the addition of two more payment banks to the list, namely Paytm Payments Bank Limited and Airtel Payments Bank Limited. These banks have also been included in the second schedule to the Reserve Bank of India Act, 1934. This inclusion signifies their eligibility to receive EPF payments.
The circular emphasizes that the EPF scheme’s provisions (specifically Para 72(e)) allow for EPF payments to be settled in these scheduled commercial payment banks. Therefore, EPF subscribers can now receive their benefits through a broader range of payment bank options.
This update is not only beneficial for EPF subscribers but also simplifies the disbursement process for EPFO authorities. It aligns with the evolving financial landscape and provides more convenience and flexibility to beneficiaries.
Conclusion: The expansion of payment banks for EPF benefit disbursements is a positive development for EPF subscribers and the Employees’ Provident Fund Organization. With the inclusion of Paytm Payments Bank Limited and Airtel Payments Bank Limited, subscribers now have additional options to receive their benefits. This change reflects the adaptability of EPFO in embracing modern financial services and making EPF disbursements more accessible and convenient for beneficiaries. It is a step forward in enhancing the efficiency and accessibility of the EPF scheme.
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EMPLOYEES’ PROVIDENT FUND ORGANISATION
MINISTRY OF LABOUR & EMPLOYMENT GOVERNMENT OF INDIA
Head Office
Bhavishya Nidhi Bhawan, 14, Bhikaiji Cama Place, New Delhi-11oo66
Website: www.epfindia.gov.in, www.epfindia.nic.in
File No: BKG/1/2021-BKG/C-32521/181
Date: 01.11.2023
To
All ACC/ACC (HQ)(Zone)
RPFC/OIC of ROs
Sub: Payment of EPF benefits to subscriber’s payment bank account-Reg.
Ref: BKG/1/2021-BKG/C-32521/I/16433/2021 dated 06.05.2021
Sir/Madam,
Vide above referred circular dated 06.05.2021, directions had been issued to settle EPF payments in Fino Payment Bank and India Post Payment Bank.
2. RBI has also included two other payment banks namely Paytm Payments Bank Limited and Airtel Payments Bank Limited in the second schedule to the Reserve Bank of India Act,1934.
3. In view of the above, as above two payment banks qualify under provision of Para 72(e) EPF scheme, all ZOs/ROs are advised that payment be settled in the above mentioned scheduled commercial payment banks also.
(This issues with approval of competent authority)
Yours faithfully,
Encl: As above
(Dheeraj Gupta)
Regional P.F. Commissioner-I(Banking)
Copy to:
1. RPFC-I(IS) for information and necessary action.
2. NDC for circular upload
RESERVE BANK OF INDIA
RBI/2021-22/148
DOR.RET.REC.76/12.07.160/2021-22
January 04, 2022
All Banks
Madam/Sir
Inclusion of “Airtel Payments Bank Limited” in the Second Schedule of the Reserve Bank of India Act, 1934
We advise that “Airtel Payments Bank Limited” has been included in the Second Schedule to the Reserve Bank of India Act, 1934 vide Notification DoR.LIC.No.S2659/16.13.215/2021-22 dated December 02, 2021 and published in the Gazette of India (Part III – Section 4) dated January 01- January 07, 2022.
Yours faithfully
(Sibo Nekhini)
General Manager
RESERVE BANK OF INDIA
RBI/2021-22/109
DOR.RET.REC.58/12.07.160/2021-22
October 07, 2021
All Scheduled Commercial Banks
Madam/Sir
Inclusion of “Paytm Payments Bank Limited” in the Second Schedule of the Reserve Bank of India Act, 1934
We advise that “Paytm Payments Bank Limited” has been included in the Second Schedule to the Reserve Bank of India Act, 1934 vide notification DoR.LIC.No.S926/16.03.006/2021-22 dated September 06, 2021 and published in the Gazette of India (Part III – Section 4) dated October 02-October 08, 2021.
Yours faithfully
(Sibo Nekhini)
General Manager
EMPLOYEES’ PROVIDENT FUND ORGANISATION
MINISTRY OF LABOUR & EMPLOYMENT GOVERNMENT OF INDIA
Head Office
Bhavishya Nidhi Bhawan, 14, Bhikaiji Cama Place, New Delhi-11oo66
Website: www.epfindia.gov.in, www.epfindia.nic.in
File No: BKG/1/2021-BKG/C-32521/I/16433/2021
Date: 06-05-2021
To
All ACC/ACC (HQ)(Zone)
RPFC/OIC of ROs
Sub: Payment of EPF benefits to subscribers payment bank account-Reg.
Ref: Bkg.1(4)2010/online remittance/Vol II/pt/ 383 dated 27.02.2019
Sir/Madam,
In reference to above subject, banking section had issued directions vide above referred letter dated 27.02.2019 to not settle amount in payment banks after seeking clarification from RBI.
Now, RBI has included two payment banks namely India Post Payments Bank Limited and Fino Payments Bank Limited in the second schedule to the Reserve Bank of India Act,1934.
In view of the above, as above two payments bank qualify under provision of Para 72(e) EPF scheme, all ZOs/ROs are advised that payment be settled in the above mentioned scheduled commercial payment banks.
(This issues with approval of competent authority)
Yours faithfully,
-sd-
(Neeraj Srivastava)
Regional P.F. Commissioner-I (Banking)
Copy to:
The RPFC-I(IS) for taking information and necessary action.
