EPFO news: EPFO simplifies claim settlement process with these two steps; check full details

In a move aimed at improving the efficiency of its processes, the Employees' Provident Fund Organisation (EPFO) has introduced two significant changes to its claim settlement procedure. These changes are designed to enhance the ease of living for EPF members and facilitate smoother operations for employers. 

Uploading images of cheques

The first measure eliminates the need for uploading images of cheque leaves or attested bank passbooks, a requirement that had previously been tested in a pilot programme for certain members. Since its implementation on 28th May 2024, this measure has benefited 1.7 crore EPF members.

This change addresses the issue of claim rejections due to poor-quality uploads and reduces related grievances. The verification of the bank account holder's name against EPF member details at the time of seeding with the Universal Account Number (UAN) ensures that additional documentation is redundant.

This change addresses the issue of claim rejections due to poor-quality uploads and reduces related grievances. The verification of the bank account holder's name against EPF member details at the time of seeding with the Universal Account Number (UAN) ensures that additional documentation is redundant.

"Following the successful pilot, EPFO has now extended this relaxation to all members. As the bank account holder’s name is already verified with the EPF member’s details at the time of bank account seeding with the Universal Account Number (UAN), this additional documentation is no longer necessary. By removing this requirement, EPFO is set to immediately benefit around 6 crore members, eliminating claim rejections due to poor-quality/unreadable uploads and reducing associated grievances," the government notification stated/
 
Employer's approval

The second major change involves removing the need for employer approval in the seeding of bank account details with the UAN. Previously, members were required to seed their bank accounts to receive PF withdrawals seamlessly, with employer approval needed post-bank verification. In the financial year 2024-25, 1.3 crore members submitted requests for this seeding, facing delays due to the employer approval process.

Data indicates that around 36,000 such requests are made daily, with banks taking three days for verification. However, employers took an average of 13 days for approval, causing significant delays. Out of the 7.74 crore contributing members, 4.83 crore have already completed this process, but 14.95 lakh approvals remain pending at the employer's end. By eliminating this approval step, EPFO plans to benefit over 14.95 lakh members immediately. 

These changes not only expedite the claim settlement process but also allow members to update their bank account details more efficiently. Members can now enter new bank account numbers and IFSC codes, verified through Aadhaar OTP, without needing employer approval. This initiative aligns with the organisation's goals of improving ease of doing business for employers and ease of living for members, marking a significant step towards reducing administrative burdens and improving service delivery. 

"Accordingly, with a view to facilitate ‘Ease of Doing Business’ to the Employers and ‘Ease of Living’ to the Members, the role of Employer to approve the verification of bank account has now been dispensed with in the seeding process of the member’s Bank Account. This will immediately benefit over 14.95 lakh members whose approvals are pending with the Employers. The above simplified process will also facilitate those members who want to change their already seeded Bank Account by entering their new Bank Account no. along with the IFSC code duly authenticated through Aadhaar OTP. The members who are yet to seed their Bank Account or change their seeded Bank Account can take advantage of the above simplified process to get their Bank Account seeded at the earliest," the notification noted.