Government and private banks have been scheming for long how to hand over the big corpus of EPFO for maximisation of the profit of the private banks and corporates. As like any other order, without discussing the stakeholders ie. the employees and their unions, the EPFO has signed an agreement with four private banks and also PSU Bank, Bank of Baroda, for collection of provident fund dues and payments to the subscribers. The private banks are ICICI Bank, HDFC Bank, Axis Bank and Kotak Mahindra Bank. EPFO had earlier tied up with the PSU Banks viz. Punjab National Bank, Allahabad Bank, Indian Bank and Union Bank of India.
Earlier justification of agreement with banks was that they are PSU Banks. Now the private banks are also included.
There is no security for the amount put in the private banks. Once the bank is collapsed, the subscribers will be cheated of their hard earned savings.