CBT approves appointment of 4 portfolio managers for EPFO, okays partial withdrawal overhaul
Additionally, it approved the ‘Vishwas Scheme’ aimed at reducing litigation. Penal damages will be capped at 1% per month, with lower rates for short-term defaults. The scheme will run for six months, extendable by another six.
- Oct 13, 2025,
- Updated Oct 13, 2025 9:43 PM IST
The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) has approved the appointment of four asset managers — SBI Funds Management, HDFC Asset Management, Aditya Birla Sun Life AMC, and UTI Asset Management — to handle its debt portfolio for the next five years.
“This decision marks a significant step towards ensuring prudent management and diversification of EPFO’s investment portfolio,” said an official release after the October 13 meeting, chaired by Labour Minister Mansukh Mandaviya.
The appointments, based on recommendations from the EPFO’s Investment Committee, followed a year-long selection process. The Request for Proposal had to be floated three times due to procedural delays, according to sources.
As of March 31, 2025, EPFO’s corpus stood at ₹23.25 lakh crore (excluding equity and public accounts). A majority of its investments will continue to be in debt securities, especially government bonds. Trade unions remain cautious about equity exposure through exchange traded funds (ETFs).
Currently, EPFO allocates 45-65% of fresh inflows to government securities, 20-45% to other debt instruments, 5-15% in equities via ETFs, and up to 5% in short-term debt.
Separately, a report by the Reserve Bank of India on improving EPFO’s investment strategy was tabled at the meeting and will be reviewed further. The labour ministry had earlier requested RBI’s inputs to strengthen fund management and boost returns.
Trustees also discussed raising the minimum monthly pension under EPS-1995, currently capped at ₹1,000, and expanding EPFO coverage. The proposals are under internal review to gauge their financial impact.
The CBT also greenlit a simplification of partial withdrawal rules by consolidating 13 provisions into three categories — Essential Needs, Housing, and Special Circumstances. Members will now be allowed to withdraw up to 100% of their eligible provident fund balance.
Additionally, it approved the ‘Vishwas Scheme’ aimed at reducing litigation. Penal damages will be capped at 1% per month, with lower rates for short-term defaults. The scheme will run for six months, extendable by another six.
The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) has approved the appointment of four asset managers — SBI Funds Management, HDFC Asset Management, Aditya Birla Sun Life AMC, and UTI Asset Management — to handle its debt portfolio for the next five years.
“This decision marks a significant step towards ensuring prudent management and diversification of EPFO’s investment portfolio,” said an official release after the October 13 meeting, chaired by Labour Minister Mansukh Mandaviya.
The appointments, based on recommendations from the EPFO’s Investment Committee, followed a year-long selection process. The Request for Proposal had to be floated three times due to procedural delays, according to sources.
As of March 31, 2025, EPFO’s corpus stood at ₹23.25 lakh crore (excluding equity and public accounts). A majority of its investments will continue to be in debt securities, especially government bonds. Trade unions remain cautious about equity exposure through exchange traded funds (ETFs).
Currently, EPFO allocates 45-65% of fresh inflows to government securities, 20-45% to other debt instruments, 5-15% in equities via ETFs, and up to 5% in short-term debt.
Separately, a report by the Reserve Bank of India on improving EPFO’s investment strategy was tabled at the meeting and will be reviewed further. The labour ministry had earlier requested RBI’s inputs to strengthen fund management and boost returns.
Trustees also discussed raising the minimum monthly pension under EPS-1995, currently capped at ₹1,000, and expanding EPFO coverage. The proposals are under internal review to gauge their financial impact.
The CBT also greenlit a simplification of partial withdrawal rules by consolidating 13 provisions into three categories — Essential Needs, Housing, and Special Circumstances. Members will now be allowed to withdraw up to 100% of their eligible provident fund balance.
Additionally, it approved the ‘Vishwas Scheme’ aimed at reducing litigation. Penal damages will be capped at 1% per month, with lower rates for short-term defaults. The scheme will run for six months, extendable by another six.