EPFO simplifies PF withdrawal process

The Employees’ Provident Fund Organisation (EPFO) has introduced two significant changes aimed at simplifying and accelerating the withdrawal of provident fund for its members.

Effective immediately, applicants no longer need to upload an image of a cancelled cheque or an attested bank passbook while applying for online PF claims. Additionally, employers will no longer be required to verify the bank account details of applicants. These reforms are set to speed up the claim settlement process for over 8 crore EPFO members and enhance ease of doing business for employers.

Earlier, members applying for PF withdrawal online were required to submit either an image of their cheque leaf or an attested copy of their bank passbook linked to their Universal Account Number (UAN) or PF number. Employers were also tasked with verifying the bank account details of the applicant. However, with these new changes, EPFO has eliminated these requirements, making the entire process more straightforward.

Union Minister for Labour and Employment Dr Mansukh Mandaviya in a post on X said, “Two major reforms have been introduced to make the claim settlement process simpler, faster, and hassle-free for crores of EPF members and employers. There will be no need to upload image of cheque leaf/attested bank passbook and bank account seeding with UAN no longer requires employer approval.”

The Labour Ministry said these changes would streamline the claims process, reduce the number of rejections caused by poor-quality document uploads, and lower the grievances of members. This move, which has already been successfully tested on a pilot basis for KYC-updated members, is expected to benefit a larger number of members across the country. Since the pilot began in May 2024, 1.7 crore members have already benefitted from the relaxed procedure.

Furthermore, during FY24-25, over 1.3 crore members have requested to seed their bank accounts with their UANs.

Business