In a move aimed at streamlining the claim settlement process, the Employees’ Provident Fund Organisation (EPFO) has introduced two significant changes designed to make operations smoother for both EPF members and employers. These changes are expected to benefit 6 crore members, improving the ease of managing and withdrawing funds.
Removal of Cheque Uploads
The first change eliminates the need for uploading cheque images or attested bank passbooks as part of the claim settlement process. Previously, this requirement led to claim rejections due to poor-quality uploads, causing inconvenience to members. With the introduction of this policy, EPFO has done away with this cumbersome step, which was initially tested in a pilot program. Since May 28, 2024, this relaxation has already benefited 1.7 crore members.
By verifying the bank account holder’s name against the EPF member’s details when the bank account is seeded with the Universal Account Number (UAN), this extra documentation is no longer necessary. As a result, EPFO expects to immediately benefit 6 crore members, significantly reducing claim rejections and grievances related to unreadable uploads.
Elimination of Employer Approval for Bank Account Seeding
The second major update addresses the employer approval process for bank account seeding with the UAN. Previously, employers were required to approve the seeding of a member’s bank account after verification by the bank, causing delays in the claim settlement process. In the 2024-25 financial year, 1.3 crore members faced delays due to this step, with employers taking an average of 13 days to approve the process, while banks took only three days.
With this change, the employer approval requirement has been removed. Members can now update their bank account details, including new bank numbers and IFSC codes, verified through Aadhaar OTP, without requiring employer approval. This change will immediately benefit over 14.95 lakh members, whose approvals were pending.
Benefits of the New Process
This simplified process expedites the claim settlement timeline and allows members to update or change their bank account details more easily. By removing the employer’s role in the approval process, EPFO has significantly reduced the administrative burden for both employers and members.
This initiative aligns with EPFO’s goals to improve ease of doing business for employers and the ease of living for members. With these changes, members no longer need to wait for lengthy approval processes, and they can update their bank accounts quickly and efficiently.
Conclusion
The EPFO’s decision to simplify these processes marks a significant improvement in the organization’s operations, benefitting both members and employers alike. The removal of cheque uploads and employer approval for bank account seeding is a crucial step forward, ensuring faster, hassle-free service and furthering the mission of reducing administrative burdens. This change makes it easier than ever for members to ensure their accounts are correctly seeded and maintain access to their provident fund without unnecessary delays.
FAQs
What changes has EPFO made to its claim settlement process?
EPFO has removed the need for uploading cheque images or bank passbooks, and eliminated employer approval for bank account seeding, making the process quicker and more efficient.
How will these changes benefit EPF members?
These changes will reduce claim rejections due to poor-quality uploads and speed up the account seeding process, benefiting over 6 crore members.
What should I do if I need to update my bank account details?
Members can now update their bank account numbers and IFSC codes using Aadhaar OTP without needing employer approval.
How many members are expected to benefit from these changes?
Approximately 6 crore members will benefit from these updates, including over 14.95 lakh members who were previously waiting for employer approval.
How does this impact employers?
The new process reduces the administrative burden on employers by eliminating the need for them to approve bank account seeding, making the process faster and more efficient.
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