EPFO Eases Online PF Withdrawals, No Employer Approval Needed
EPFO Eases Online PF Withdrawals, No Employer Approval Needed
EPFO removes the need to upload a cancelled cheque and eliminates employer verification for online PF withdrawals, streamlining the claims process.
The Employees’ Provident Fund Organisation (EPFO) has removed the requirement for members to upload a cancelled cheque image or an attested bank passbook copy while submitting online claims. Additionally, employer verification of bank accounts will no longer be necessary, according to a statement from the Ministry of Labour.
The decision aims to expedite claim settlements for EPFO’s eight crore members and simplify processes for employers.
Previously, members applying for provident fund (PF) withdrawals online were required to upload an image of a cheque or an attested copy of their bank passbook linked to their Universal Account Number (UAN). Employers had to approve these bank details. With the latest policy change, these steps have been eliminated to streamline claim processing and reduce claim rejections.
The requirement was initially relaxed on a pilot basis for select Know Your Customer (KYC)-updated members. Launched on May 28, 2024, the pilot benefited 1.7 crore members. Following its success, the relaxation has now been extended to all EPF members.
According to the ministry, bank account verification is already completed during the initial seeding of accounts with the UAN, making additional documentation redundant. This move aims to prevent claim rejections due to unreadable or poor-quality uploads and minimize related grievances.
During the 2024-25 financial year, 1.3 crore EPF members submitted bank account seeding requests. Banks typically take three days for verification, while employers take an average of 13 days to approve the process, creating backlogs and delays. On a daily basis, approximately 36,000 bank seeding requests are generated.
Currently, 7.74 crore members contribute to the EPFO monthly, with 4.83 crore already having their bank accounts linked to UAN. Employer approvals for 14.95 lakh members remain pending. The removal of the employer verification step is expected to immediately benefit these members and reduce processing delays.
Members wishing to update their bank details can now enter their new account number and IFSC code, which will be authenticated through Aadhaar-based OTP verification.
