EPFO simplifies claim process with two key reforms: What are the benefits for members, employers?

NEW DELHI: The Employees' Provident Fund Organisation (EPFO) recently announced two key reforms to make the claim settlement process "simpler, faster, and hassle-free" for crores of EPF members and employers across India.

These implementations will enhance the efficiency of claim settlements while reducing complaints about claim rejections , thereby enhancing the " Ease of Living " for EPF members and "Ease of Doing Business" for employers.
The key reforms introduced are:

1. No more cheque image or passbook upload needed for EPF claims

EPFO has eliminated the requirement of uploading a scanned image of a cheque leaf or an attested bank passbook when filing online claims .

• Initially introduced as a pilot for KYC-compliant members, the move has already assisted 1.7 crore EPF members since May 28, 2024. Following positive results, EPFO has now implemented this change universally.
  
• Now extended to all EPF members, this reform aims to prevent claim rejections caused by poor-quality document uploads.
  
• As the member’s bank account is already verified at the time of seeding with the UAN, further document proof is no longer needed.
  
• This change is expected to benefit around 6 crore members immediately by cutting down delays and reducing rejections.

2. Bank account linking with UAN no longer needs employer approval

To further streamline the bank account seeding process, EPFO has removed the requirement of employer approval after bank verification.

• Members must link their bank accounts with UAN to receive PF withdrawals directly. During FY 2024-25, 1.3 crore members submitted account linking requests.

• Banks typically require 3 days for verification, while even after successful bank verification, employer approval took an average of 13 days, causing delays and piling up work.

• With this change, members can now seed or change their bank account details using Aadhaar OTP, skipping the employer’s approval step.
  
• This will instantly benefit nearly 15 lakh members whose requests were stuck awaiting employer action.
  

Currently, of 7.74 crore monthly contributors, 4.83 crore have linked their accounts, with 14.95 lakh requests awaiting employer approval. These pending applications will receive immediate processing under the new system.

This revision aims to enhance operational efficiency for employers and improve service delivery for members by removing employer verification from the bank account linking process.

The change will immediately assist over 14.95 lakh members with pending approvals. Members can now modify their linked accounts by entering new details with IFSC codes, verified through Aadhaar OTP.