Experts Question EPFO's Core Banking Transition
EPFO's push for Core Banking Solution (CBS) raises concerns due to its unsuitability for managing provident funds, pensions, and insurance, given EPFO's 30 million accounts. Experts advocate for a ledger-based system, arguing CBS adds unnecessary complexity and cost. Government reconsideration is urged for efficient and affordable service.
- Country:
- India
In New Delhi, skepticism surrounds the Employees' Provident Fund Organisation (EPFO) as experts question its decision to implement a Core Banking Solution (CBS), deemed excessive for managing provident funds, pensions, and insurance schemes.
The EPFO's recent Expression of Interest (EoI) demands CBS experience from providers managing over 100 million accounts, while EPFO handles only 30 million accounts. Critics argue complex banking features are irrelevant, suggesting a simpler, cost-efficient ledger-based system instead.
Highlighting global best practices, experts cite examples like Brazil's Dataprev and developed countries using accessible software, emphasizing the need for EPFO to adopt more suitable, scalable solutions, urging policymakers to rethink the CBS push for the sake of transparency and affordability.
(With inputs from agencies.)
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