Retirement fund body EPFO has launched a facility for bulk transfer of funds from exempted establishments through a single payment.
EPFO has now released the functionality for bulk transfer of funds from exempted establishments to EPFO through a single payment.
Retirement fund body EPFO has launched a facility for bulk transfer of funds from exempted establishments through a single payment. Exempted establishments are those which have been granted exemption under Section 17 of EPF & MP Act, 1952 and manage the provident fund of members themselves under overall supervision of the Employees’ Provident Fund Organisation (EPFO). “Apurva Chandra, Secretary (Labour & Employment) launched a new facility of bulk transfer of funds and data from exempted trusts to EPFO through a single payment, during his first visit to EPFO headquarters, on 7th October, 2020,” a labour ministry statement said.
EPFO has now released the functionality for bulk transfer of funds from exempted establishments to EPFO through a single payment. This facility will enhance ease of doing business by increasing the speed of funds transfer for exempted establishments. On change of employment of a member from exempted to unexempted establishment, his past accumulations are transferred to EPFO. Till now, exempted establishments had to approve and transfer the funds one-by-one for each member. Larger establishments requiring to transfer the funds of many employees each day, found the process very cumbersome and time taking.
Under the new facility, exempted establishments can bulk upload data and transfer the funds for large number of members, through a single payment. This initiative is expected to benefit around 1,500 exempted establishments of EPFO. All transactions between EPFO and exempted establishments have already been made electronic, thereby eliminating issues regarding delay and reconciliation of funds transferred. In case of member shifting job from unexempted to exempted establishment, EPFO electronically transfers the funds in the bank account of the exempted establishment and the details of the transaction is made available in the login of the establishment.
This has enabled faster crediting of funds in the account of the member maintained by exempted establishment. Further, exempted establishments have already been provided the facility to file their monthly (PF) returns and Electronic Challan-cum-Return (ECRs) for remittance of Pension Fund contribution electronically, thereby facilitating compliance in a hassle free manner. Another facility launched by the labour secretary will enable EPFO members to obtain Scheme Certificate through Umang App.
Scheme Certificate is issued to members who withdraw their EPF contributions but wish to retain their membership with EPFO, to avail pension benefits on attainment of retirement age. The ease of applying for Scheme Certificate through Umang App will now help members to avoid unnecessary hardship of physically applying for it, especially during the pandemic times. The facility shall benefit over 5.89 crore subscribers. Chandra joined as Secretary to the Ministry of Labour & Employment on October 1, 2020.