PF Withdrawl Process: Are you also a PF account holder? Then this article is for you. Great news for millions of employees linked to the Employees Provident Fund (EPF)! The Employees Provident Fund Organization (EPFO) has launched a new initiative aimed at making online withdrawals simpler and more user-friendly. Now, members looking to withdraw funds from their PF accounts won’t need their employer’s approval for bank account verification, and they no longer have to upload a scanned copy of a canceled check or bank passbook. This change will benefit over 80 million EPF members, making the claim process quicker and more straightforward.

Union Minister Shares Update
Union Labor and Employment Minister Dr. Mansukh Mandaviya shared this update on social media, stating, “Under Prime Minister Narendra Modi’s leadership, EPFO is on a path of reform. We’ve introduced two significant changes that simplify the claim process, making it faster and hassle-free for millions of EPF members and employers.” Previously, employees had to upload a canceled check or bank passbook and get their bank account details verified by their employer to link it to their Unified Account Number (UAN). However, the Union Minister announced that these requirements have now been removed.

Faster Claim Settlements Expected
The government anticipates that this new rule will greatly speed up the EPF claim settlement process and decrease the number of rejected claims. Often, claims were denied due to poor-quality documents being submitted. Now that bank accounts are already linked to the UAN and verified, this extra documentation step is no longer necessary. According to government data, this exemption was initially offered to some KYC-updated account holders as a pilot project in May 2024, benefiting 17 million EPF members. Following the pilot’s success, it has now been rolled out to all members.

1. Streamlining Bank Verification Time
Every year, about 1.3 crore members apply to link their bank accounts with their UAN. These applications are verified against bank/NPCI records and need employer approval through a digital signature or e-sign. While banks typically take around 3 days for verification, getting the employer’s approval can take an average of 13 days. This not only adds to the workload but also delays the linking process. The new rule removes the requirement for employer approval, which will help the 14.95 lakh members whose applications have been stuck until now.

Making Bank Account Changes Easier
The EPFO has also made it simpler for members who wish to change their linked bank accounts. Now, they can easily update their information by entering the new bank account number and IFSC code, verified through an Aadhaar-based OTP. This means members can change their bank details without any hassle.

Expected Increase in PF Auto Settlement Limit

Recent reports indicate that the government plans to raise the auto settlement limit for PF accounts from Rs 1 lakh to Rs 5 lakh. Labor Ministry Secretary Sumita Dawra has given the green light to this proposal during a recent meeting in Srinagar. It will now be forwarded to the Central Board of Trustees (CBT) for final approval. Once approved, this change will simplify the auto settlement process for millions of EPF members.