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"Present decentralised system of EPFO for making payment to its beneficiaries involves higher cost of transactions, delays in recredits in case of failed transaction and does not provide for Aadhaar enabled payments," Ministry of Labour and Employment said in a statement.ALSO READ: EPFO subscribers will get benefit of equity investments from FY19
The benefit of the proposed system is that the funds will be transferred on the same day to the beneficiaries through NPCI platform.
The office may reconcile the transaction status on T+0 basis and thus help in early recredit in the accounts of beneficiaries in the case of failed transactions, the official statement said.
The meeting of the Central Board of Employees' Provident Fund Organisation (EPFO) was held in New Delhi on Thursday under the chairmanship of Union Minister of Labour and Employment Santosh Kumar Gangwar approved the proposal.