The Employee Provident Fund Organization (EPFO) has proposed to move towards a centralised payment system using the National Payments Corporation of India's (NPCI) Immediate Payments Service (IMPS) platform to pay beneficiaries, reports ANI.
"The present decentralised system used by the EPFO for making payments to its beneficiaries involves higher cost of transactions, delays in recredits in case of failed transactions and does not provide for Aadhaar enabled payments," said a statement issued by the Ministry of Labour and Employment.
If the proposal goes through, beneficiaries would receive their provident funds on the same day.
The EPFO may reconcile the transaction status on a T+0 basis for early recredition to beneficiaries' bank accounts if a transaction fails, the statement added.
"The availability of the facility of Aadhaar-enabled transfer of funds and the transaction cost by way of bank charges will also come down," it added.
The Central Board of Employees' Provident Fund Organisation (EPFO) held a meeting in New Delhi on Thursday ( 23 November). It was chaired by Union Minister for Labour and Employment Santosh Kumar Gangwar who approved the proposal.
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