The claim settlement process in the Employees’ Provident Fund Organization (EPFO) has now become simpler. On Thursday, the central government announced two major reforms to make the process easier and reduce the chances of claim rejections.
One of the key changes is that EPFO has removed the need to upload a photo of a cheque or a verified bank passbook when filing online claims. This change is expected to benefit over 7.7 crore EPFO members.
Initially, this requirement was lifted only for a few members updating their KYC details, as part of a pilot project. Since its launch on May 28, 2024, around 1.7 crore members have already benefited from it.
Reforms Now Available to All Members
The Ministry of Labor and Employment has now extended this facility to all EPFO members. The government explained that when a bank account is linked with a member’s Universal Account Number (UAN), the account holder’s name is already verified with EPFO records. Therefore, additional documents like cheque photos or passbook copies are no longer needed.
Another important reform is that EPFO has also removed the need for employer approval after bank account verification.
This makes it easier for members to link their bank accounts with UAN. Every member must link their bank account with their UAN to ensure that PF withdrawals are directly credited to their account.
Currently, out of the 7.74 crore active members, 4.83 crore have already linked their bank accounts with UAN. However, 14.95 lakh bank account link requests are still awaiting employer approval.
The ministry also stated that these changes will help members who want to update their bank account details. Members can now enter a new bank account number and IFSC code using Aadhaar OTP to make the update easily.