Big EPFO update: PF withdrawals got easier with these 2 major changes

The Employees’ Provident Fund Organisation (EPFO) has introduced two major reforms to simplify its claim settlement process, Union Minister Mansukh Mandaviya said on Thursday.

Announcing the reforms, the Minister of Labour and Employment posted on X: "Under the leadership of PM Shri @narendramodi ji, EPFO continues its reform journey! Two major reforms have been introduced to make the claim settlement process simpler, faster, and hassle-free for crores of EPF members & employers."

The two key changes include the removal of the requirement to upload an image of a cheque leaf or an attested bank passbook and the elimination of employer approval for seeding bank account details with the Universal Account Number (UAN).

No need to upload cheque leaf/attested bank passbook

EPFO has done away with the requirement of uploading an image of a cheque leaf or an attested bank passbook while filing online claims. Initially launched on a pilot basis for KYC-updated members on May 28, 2024, the measure has already benefited 1.7 crore EPF members, according to the labour and employment ministry.

EPFO has now extended this relaxation to all members.

“As the bank account holder’s name is already verified with the EPF member’s details at the time of bank account seeding with the Universal Account Number (UAN), this additional documentation is no longer necessary,” the ministry said.

“By removing this requirement, EPFO is set to immediately benefit around 6 crore members, eliminating claim rejections due to poor-quality/unreadable uploads and reducing associated grievances.”

No employer approval required for bank account seeding with UAN

EPFO has also removed the requirement of employer approval for seeding bank accounts with UAN after bank verification. Currently, members are required to seed their bank accounts with UAN to facilitate seamless PF withdrawals.

During the financial year 2024-25, 1.3 crore members submitted requests for seeding their bank accounts, which, after due verification with banks and the National Payments Corporation of India (NPCI), required employer approval via DSC or e-Sign.

It was observed that around 36,000 bank account seeding requests were raised daily, with banks taking an average of three days for verification. However, employers took an additional 13 days on average for approval, leading to delays.

With 14.95 lakh approvals pending at the employer level, the removal of this step is expected to immediately benefit the affected members.

The new process will also help members looking to update their bank account details, allowing them to enter their new account number and IFSC code, authenticated through Aadhaar OTP.

“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,” according to an official readout.