In a significant move to enhance the ease of living for Employees’ Provident Fund (EPF) members and improve ease of doing business for employers, the Employees’ Provident Fund Organisation (EPFO) has introduced two major simplifications in its claim settlement process. These reforms aim to streamline claim settlements and reduce grievances related to claim rejections.
One of the key changes is the removal of the requirement to upload an image of a cheque leaf or attested bank passbook while filing online claims. This rule was initially relaxed on a pilot basis for KYC-updated members, benefiting 1.7 crore individuals since its launch on May 28, 2024. Following its success, EPFO has now extended this relaxation to all members. As the bank account holder’s name is already verified at the time of bank account seeding with the Universal Account Number (UAN), this additional documentation is no longer necessary. This change will immediately benefit around 6 crore members by eliminating claim rejections due to poor-quality uploads and reducing related grievances.
Another major reform involves the removal of employer approval for seeding bank account details with UAN. Previously, after bank verification, employer approval was required for linking bank accounts, causing delays. Currently, around 36,000 requests for bank account seeding are raised daily, with banks taking an average of three days to verify the details. However, employer approvals have been taking an additional 13 days, creating a backlog. Out of 7.74 crore contributing EPF members, 4.83 crore have already linked their bank accounts, but 14.95 lakh approvals remain pending at the employer level.
To address these delays, EPFO has now eliminated the requirement for employer approval after bank verification, allowing faster processing. This change will immediately benefit the 14.95 lakh members awaiting approvals and also simplify the process for those who wish to update their bank details. Members can now enter their new bank account number along with the IFSC code, verified through Aadhaar OTP.
These reforms mark a significant step toward improving efficiency and making the claim settlement and bank account seeding processes more seamless for EPF members.