Employees’ Provident Fund Organisation (EPFO) members, while applying for online withdrawal from their PF accounts, had to upload a verified copy of a cancelled cheque or the passbook of the bank account linked to their UAN (Universal Account Number) or PF number. Now, this requirement has been removed by the government.
Applicants who want to withdraw money online from their Provident Fund will no longer need to upload a cancelled cheque or get their bank account verified by their employer. The retirement body has shared that a new claim process has been created for members based on this decision. This step by the pension regulator will make the claim process easier for about 8 crore EPFO members.
No Need to Upload Canceled Cheque for EPFO Claim Anymore
Currently, Employees’ Provident Fund Organisation (EPFO) members, while applying online to withdraw funds from their PF accounts, have to upload a verified photocopy of a canceled cheque or a passbook of the bank account linked to their UAN (Universal Account Number) or PF number. Employers also need to approve the applicant’s bank account details.
Fewer Claim Rejections Expected, Says EPFO
The Ministry of Labour has announced that EPFO has removed the requirement to upload a cancelled cheque or a verified bank passbook while filing an online claim. EPFO said that this step has been taken to make the claim process easier for its members. With this move, the process of claim settlement will improve, and complaints related to claim rejections will reduce.
Over 1.7 Crore Members Benefited in the Pilot Phase
EPFO first tested this new process as a pilot program for members whose KYC was already updated. Since the launch of this pilot on 28 May 2024, more than 1.7 crore EPF members have benefited. After its success, EPFO has now extended this benefit to all its members.
Employers’ Role Removed to Save Time
EPFO noted that, on average, it takes around 13 days for employers to approve bank account details after verification. This delays the linking of members’ bank accounts and adds extra work for employers. To speed up the process, EPFO has decided to end this requirement.
Over 8 Crore Members to Benefit
Currently, out of the 7.74 crore members who contribute to EPFO every month, 4.83 crore have linked their bank accounts with UAN. Around 14.95 lakh approvals are still pending with employers.
Now that employer approval is no longer needed, these 14.95 lakh members will benefit immediately. Also, members who want to update or change their bank account details can now do so by entering the new account number and IFSC code, verified through Aadhaar-based OTP.