By News365 Times Bureau
India’s retirement savings system has come under sharp criticism after revelations that nearly ₹90,000 crore remains stuck in the Employees’ Provident Fund Organisation (EPFO), largely due to outdated processes and procedural bottlenecks.
Noted economist Sanjeev Sanyal recently flagged that the EPFO withdrawal process involves as many as 25 steps, leaving many employees struggling to access their own savings. This cumbersome system has given rise to a parallel network of brokers who reportedly charge up to 20% of the amount to “facilitate” withdrawals.
Sanyal pointed out that India often mistakes digitisation for reform—merely putting old bureaucratic steps online without simplification. He argued that unless the system itself is fundamentally restructured, the pain of accessing EPFO funds will persist.
Mohan Shukla’s Take: “Climbing Himalayan Heights Without Safety Equipment”
Reacting to the issue, Shri Mohan Shukla, Chairman of the Board of Governors at News365 Times, delivered a sharp critique of the EPFO’s functioning:
“Due to the old and outdated processes and procedures in EPFO, which seem to stay away somehow from technological advancement in India, getting back one’s own hard-earned money from EPFO is as good as climbing up the Himalayan Heights without safety equipment. Therefore, the Ministry of Labour & Employment must take a hard look at the functioning of EPFO to root out red-tapism in the system.”
Shukla emphasized that the problem is not merely one of inefficiency, but a direct erosion of trust in an institution meant to safeguard workers’ retirement savings.
The Larger Picture
With India rapidly modernising its financial ecosystem through initiatives like UPI, Aadhaar-enabled services, and digital banking, experts argue that EPFO’s archaic procedures stand out as a glaring exception.
Stakeholders, including policymakers and employee unions, are now being urged to demand a comprehensive reform package that focuses on:
- Simplifying withdrawal processes to just a few steps.
- Eliminating middlemen and brokers by ensuring direct, transparent access.
- Auditing legacy systems that prevent smooth adoption of digital tools.
The EPFO, meant to be a pillar of social security, is increasingly being viewed as an obstacle course for the very workers it was designed to protect. Unless reforms are accelerated, the massive ₹90,000 crore backlog may continue to grow—deepening mistrust among millions of contributors.
News365 Times will continue to track how the Ministry of Labour & Employment responds to mounting calls for reform.
