The process of settling claims with the Employees’ Provident Fund Organization (EPFO) has now been made easier.
On Thursday, the central government introduced two new reforms aimed at simplifying the claim settlement process, which will help reduce complaints regarding claim rejections.
The new changes build on a pilot initiative that was launched in May 2024 for members updating their KYC details. So far, 1.7 crore EPFO members have benefited from this pilot project.
Reforms Now Apply to All Members
The Union Ministry of Labor and Employment announced that these reforms, after proving successful in the pilot phase, are now being extended to all EPFO members.
According to the government, when a member links their bank account with their Universal Account Number (UAN), the bank account holder’s name is already verified against the EPFO records. As a result, the need for additional documentation has been eliminated.
Furthermore, to streamline the process of linking a bank account with the UAN, EPFO has removed the requirement for employer approval after bank verification.
Now, all members must link their bank account with UAN to ensure smooth PF withdrawals directly into their bank account.
Linking Bank Accounts: Current Status
Out of the 7.74 crore EPFO members who contribute each month, 4.83 crore members have already linked their bank accounts with UAN. However, 14.95 lakh approvals are still pending at the employers’ level.
The ministry also mentioned that the new amendments would help members who wish to change their previously linked bank account.
They can now update their account details by entering a new bank account number with the IFSC code through Aadhaar OTP.
These changes are expected to further simplify the EPFO claim process, benefiting millions of members.
