₹90,000 crore stuck in EPFO: Sanjeev Sanyal slams red tape choking citizen savings
He stressed that technology alone can’t reform dysfunctional systems. “We’ve made the mistake of putting the same old bureaucratic process online. That’s not reform,” Sanyal said.
- Aug 3, 2025,
- Updated Aug 3, 2025 2:13 PM IST
Economist Sanjeev Sanyal has flagged persistent inefficiencies in India’s financial governance, criticising the outdated bureaucratic processes that continue to obstruct access to citizens’ savings—even in systems touted as digitised.
On the Growing India podcast hosted by Monica Halan, Sanyal revealed that over ₹90,000 crore remains locked in the Employees' Provident Fund Organisation (EPFO) due to an overly complicated withdrawal process. “It takes 25 steps to withdraw your own money. Not surprisingly, it gets jammed somewhere,” he said, noting that this has spawned a parallel ecosystem of brokers who charge up to 20% to “help” people access their funds.
He stressed that technology alone can’t reform dysfunctional systems. “We’ve made the mistake of putting the same old bureaucratic process online. That’s not reform,” Sanyal said.
Pointing to the Investor Education and Protection Fund (IEPF), Sanyal called it a place “where shares go to die,” referring to the lack of accessibility and transparency for heirs or investors trying to claim unclaimed assets after a death or lost documentation.
Such systemic hurdles, he argued, create space for rent-seeking and deny justice to rightful claimants. “You criminalise normal activities and create a rent-extracting state,” Sanyal said, calling for root-level reform.
While India aims to become the “office to the world,” he underscored the need to dismantle legacy systems. “We must simplify, not just digitise,” he said.
What is EPFO?
The Employees’ Provident Fund Organisation (EPFO) is a statutory body under India’s Ministry of Labour and Employment. It manages retirement savings for salaried employees in the organised sector, overseeing the EPF, EPS, and EDLI schemes. With millions of beneficiaries and substantial financial volumes, it is among the world’s largest social security organisations.
Economist Sanjeev Sanyal has flagged persistent inefficiencies in India’s financial governance, criticising the outdated bureaucratic processes that continue to obstruct access to citizens’ savings—even in systems touted as digitised.
On the Growing India podcast hosted by Monica Halan, Sanyal revealed that over ₹90,000 crore remains locked in the Employees' Provident Fund Organisation (EPFO) due to an overly complicated withdrawal process. “It takes 25 steps to withdraw your own money. Not surprisingly, it gets jammed somewhere,” he said, noting that this has spawned a parallel ecosystem of brokers who charge up to 20% to “help” people access their funds.
He stressed that technology alone can’t reform dysfunctional systems. “We’ve made the mistake of putting the same old bureaucratic process online. That’s not reform,” Sanyal said.
Pointing to the Investor Education and Protection Fund (IEPF), Sanyal called it a place “where shares go to die,” referring to the lack of accessibility and transparency for heirs or investors trying to claim unclaimed assets after a death or lost documentation.
Such systemic hurdles, he argued, create space for rent-seeking and deny justice to rightful claimants. “You criminalise normal activities and create a rent-extracting state,” Sanyal said, calling for root-level reform.
While India aims to become the “office to the world,” he underscored the need to dismantle legacy systems. “We must simplify, not just digitise,” he said.
What is EPFO?
The Employees’ Provident Fund Organisation (EPFO) is a statutory body under India’s Ministry of Labour and Employment. It manages retirement savings for salaried employees in the organised sector, overseeing the EPF, EPS, and EDLI schemes. With millions of beneficiaries and substantial financial volumes, it is among the world’s largest social security organisations.