EPFO looks for new custodian after 15 years

EPFO

After nearly 15 years, the Employees Provident Fund Organisation (EPFO) is looking to empanel a new custodian, replacing Standard Chartered Bank which is currently operating as the custodian and manages a corpus of Rs 31 trillion for the retirement fund manager.

Besides appointing a custodian, the EPFO also has the task of appointing portfolio managers, asset management companies as well as an external concurrent auditor (ECA), which audits the investment activity of the EPFO.

According to a report in the Business Standard, Standard Chartered Bank was appointed as the custodian of EPFO in November 2011 and the plan to appoint a new custodian has been delayed for nearly five years.

According to sources in the know of the matter, the EPFO revoked the selection of Citibank as the custodian in 2023. In 2024, the EPFO’s investment committee decided not to simultaneously run the process of appointing a new custodian as well as new portfolio managers.

Although, the EPFO approved the appointment of a couple of asset management companies in October last year---while also approving the re-appointment of existing portfolio managers SBI Fund Management and UTI Asset Management Company---it’s investment committee decided to issue a request for proposal (RFP) and invited bids from eligible companies, reported Business Standard.

The committee is also in the process of finalising an RFP for the appointment of its external concurrent auditor. Choksi & Choksi LLP, whose tenure expired on January 31, is holding fort until December 31 this year until a new auditor is appointed..

An email sent to the EPFO did not elicit a response till press time.As on December 31, 2025, the EPFOs debt investments constituted over 89 per cent of its overall portfolio, while its equity investments accounted for 10.57 per cent.

The portfolio managers of the EPFO handle its debt investments, while the asset management companies (AMCs) manage its equity investments.

Besides the custodian, portfolio managers, asset management companies and the external concurrent auditor, the EPFO has one more external partner agency ‘Crisil’ as consultant to make these selections and evaluate performance of portfolio managers.