Explainer: EPFO simplifies PF withdrawals, faster, easier access for millions
In a bid to streamline and expedite the process of provident fund (PF) withdrawals, retirement fund body Employees' Provident Fund Organisation (EPFO) has introduced key changes that will significantly simplify the process for over eight-crore subscribers.
Sanjay Khurana explores these reforms in this detailed Q&A
What is EPFO's latest move?
The EPFO has introduced two major changes that will make the process of withdrawing funds from your Provident Fund (PF) faster and more seamless than ever before. Now, uploading cancelled cheque images or attested bank passbooks are not required. Moreover, employers are also not required to verify your bank account details.
Whom it will affect?
It will affect all EPFO subscribers. These new measures will streamline the claim settlement process, reduce rejections due to poor document quality, and significantly lower the number of grievances, ensuring that you can access your PF funds with ease and speed. With these changes, EPFO members can now look forward to quicker withdrawals and a much smoother experience overall.
Is this a good move?
Yes, this is a very good move and a win-win situation for both employees and employers. It is aimed at simplifying and accelerating the withdrawal of provident fund for its members. Additionally, employers will no longer be required to verify the bank account details of applicants and this move will enhance ease of doing business for employers.
Why has it been done now?
It has been done to streamline the process of seeding bank accounts with Universal Account Number (UAN). At present, every member is required to seed his/her bank account with UAN in order to get their PF withdrawals seamlessly credited to such account.
Other reasons for these changes.
Around 36,000 requests for seeding of bank account are being raised by the members on a daily basis and the banks take an average of 3 days to complete the verification. However, after the bank verification, the average time taken by the employer to approve the process is about 13 days resulting in piling up of workload at the level of the employer and consequent delay in the seeding of bank account for the member. Further, this approval step is not adding any value to the verification process.
How it will benefit?
The above simplified process will also facilitate those members who want to change their already seeded bank account by entering their new bank account number along with the IFSC code duly authenticated through Aadhaar OTP. Moreover, 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.
