Exclusion of employees of Regional Rural Banks from the purview of EPF & MP Act, 1952: EPFO
Exclusion of employees of Regional Rural Banks from the purview of EPF & MP Act, 1952: EPFO Order dated 15.02.2021
EMPLOYEES’ PROVIDENT FUND ORGANISATION
MINISTRY OF LABOUR & EMPLOYMENT, GOVERNMENT OF INDIA
Bhavishya Nidhi Bhawan, 14, Bhikaiji Cama Place, New Delhi-110066
No. Pension. I/17(3)19/RRB
All Zonal ACCs
Sub: Exclusion of employees of Regional Rural Banks from the purview of EPF & MP Act, 1952 – Regarding
With reference to the above cited subject, it is hereby informed that the matter regarding exclusion of employees of Regional Rural Banks from the purview of EPF & MP Act, 1952 has been examined at the Head Office and it is observed that RRBs got excluded from purview of EPF & MP Act, 1952 in the consequence of judgement dated 25.4.2018 of Hon’ble Supreme Court of India in SLP No. 39288 in which the judgement of Hon’ble high Court of Rajasthan dated 23.08.2012 in D.B. Civil Special Appeal (W) No. 2021/2011 in SBCWP No. 4366/2005 was upheld. Accordingly, the field offices of EPFO, with which the RRBs are registered, are required to take a consequential action pursuant to exclusion of RRBs i.e. the payment of transfer value of the Pension accumulation in respect of employees of RRBs which are excluded from the purview of the Employees’ Pension Scheme 1995 as per the stated judgement.
Provisions for transfer of accumulations out of the Pension Fund in respect of members exiting EPS 1995 are contained in para 39-B thereof. The accumulations of employees of RRBs may also be transferred to the respective Pension Funds as per the modalities prescribed in the indicated paragraph.
However, employees of the RRBs who became eligible for pensionary benefit under EPS, 1995 prior to the date of exclusion from EPF & MP Act, 1952, will continue to receive such benefits from EPFO. No transfer of accumulations of such employees, therefore, will be required.
(This issues with the approval of CPFC)