The Employees Provident Fund Organization (EPFO) has made a big change to make the online PF withdrawal process easier. Now to withdraw money from the EPF account, the subscribers will not need to upload a verified photocopy of the check or bank passbook. Also, the requirement of verification of the bank account by the employer has also been removed.
Why did EPFO make this change?
This new rule will benefit about 8 crore EPF account holders across the country. This will speed up the claim settlement process and also increase the ease of doing business for employers.
What was required for EPF withdrawal earlier?
Earlier, when an EPF account holder applied for online withdrawal, he had to upload a verified photo copy of the check or passbook of the bank account linked to his UAN (Universal Account Number) or PF account. Also, the employer was also required to verify the bank account. Now both these requirements have been completely abolished.
Benefits of the New EPFO Rule
- Faster claim settlement: The EPF withdrawal process will be faster than before.
- Reduction in rejection of claims: Problems related to bank account verification will now end.
- All account holders will get benefit: Now this rule has been implemented for all EPF account holders.
- Employers’ workload will be reduced: Now employers will not have to bear the responsibility of verifying the bank account.
Trial Run Success Since May 28, 2024
This change was implemented on 28 May 2024 for some KYC-updated members on a trial basis. During this time 1.7 crore EPF contributors got its benefit. After successful testing, it has now been implemented for all EPF account holders.
Official Statement by EPFO and Labor Ministry
The Ministry of Labor said, “These requirements have been abolished to ensure ‘ease of life’ for EPF members and ‘ease of business’ for employers.”
Now there will be no need to upload a photo of check or passbook for EPF withdrawal.
The requirement of verification of bank account by the employer has been abolished.
The claim settlement process will be faster and the number of rejected claims will decrease.
This new rule has become applicable to all EPF account holders.
It has been successfully tested from 28 May 2024 and now it has been fully implemented.
Also Read – EPFO’s Big Decision: Over 7 Lakh Members Denied High PF Pension – Here’s Why
