New direction of EPFO reforms
After the announcement of liberal withdrawal rules, the Employees’ Provident Fund Organization (EPFO) is planning to launch UPI-linked services. Under this, EPFO is going to introduce a new portal in the next phase of its reforms, which will use new software in the backend and AI-powered language translation tools to provide information to members in local languages, a senior government official said.
EPFO 3.0 launched
This transition to EPFO 3.0 involves significant changes in the technical framework of the fund as it moves towards a core banking solution. This is coming as after the implementation of the Labor Code, the retirement fund body is expanding its scope to cover employees in both organized and unorganized sectors.
Importance of Core Banking Solutions
Core Banking Solution is seen as an important feature in the next phase of this reform, as it will establish a centralized operational system for EPFO, allowing members to resolve their problems anywhere in the country. It is also learned that EPFO may manage a fund for unorganized workers, which will be separate from the social security fund for gig and platform workers. Currently, the retirement fund body has around 8 crore active members and manages a corpus of around Rs 28 lakh crore.
future plans
“Under EPFO 3.0, there will be a new framework and core banking solution in the backend. We will be able to cater to all the requirements of organized and unorganized employees. This will also take into account the increase in volumes. The entire system, including the portal, will be changed,” an official said.
Use of language translation tools
EPFO plans to make greater use of language translation tools to deliver local language information to its members. “We will use tools like Bhashini to provide information in the local language,” the official said. Bhashini is an AI-powered language translation platform developed by the Ministry of Electronics and Information Technology.
Management of Social Security Scheme
EPFO is now in the final stages of finalizing the tender to select an agency that will implement, operate and maintain the IT platform for managing its various social security schemes. “The tender is almost ready, financial scrutiny is underway. It will be released soon,” the official said.
Launch of UPI-linked facility
In June last year, EPFO had issued an expression of interest (EOI) to select an agency for the tech platform, after which it shortlisted three companies – Wipro, Infosys and TCS. The second phase of EPFO 2.0 is in its final stages, and the UPI-linked facility is expected to be launched by April.
Development of various modules
“In September, we launched a new ECR (electronic challan less returns) and an internal user management module. Now we have only three modules left – pension, claims and total annual account. The process is expected to be completed in 1-2 months,” the official said.
Change in return rules
EPFO is working on bringing the facility of withdrawal of money using Unified Payments Interface (UPI) through BHIM app for its members. The new feature will allow members to see their available balance, which will be shown separately as balance eligible for withdrawal and minimum 25% balance.
improvements for members
This comes after EPFO announced simplification of its withdrawal rules following a board meeting in October last year, reducing the withdrawal categories from 13 to three. EPFO is taking several steps to simplify the processes for its members, including improving the details and claim settlement process.
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