Retirement fund body EPFO’s plan to engage private sector banks in collection of contributions may not be implemented soon as its apex decision-making body Central Board of Trustees (CBT), in its meeting last week, has decided to examine the proposal threadbare before giving a go-ahead.
The proposal, which also requires an amendment to the Employees’ Provident Fund Scheme, 1952, is aimed at accrediting more banks for collection of dues as part of “ease of doing business”, the retirement fund body said in its agenda for the 213th meeting of the central board held on July 8. It wanted to authorise three private sector banks – ICICI Bank, HDFC Bank and Axis Bank – to collect contributions efficiently and to provide hassle-free service to the establishments. “Such a step would cut down float available with the payment aggregator by two days and would lead to an earning of R15 crore annually for EPFO,” it said.