EPFO changed the rules for EPF account, now there will be more checking than before

EPFO: EPFO ​​has implemented new rules to increase control over dormant accounts. The Employees' Provident Fund Organization (EPFO) has implemented new rules to strengthen control over dormant accounts with the aim of curbing fraud and unauthorized withdrawals. Under the new rules, the standard operating procedure (SOP) for dormant accounts has been updated, which includes a strict verification process.

The accounts are divided into 2 categories

Low Transaction Accounts: Accounts which have not seen any credit or debit (except interest) in a given period are categorised as 'transactionless accounts'.

Inactive accounts: Accounts falling under the criteria already set under the EPF scheme will be put in the category of 'inactive'. Both types of accounts will now have to undergo a verification process before any withdrawal or transfer can be made.

Mandatory Universal Account Number (UAN)

Under these new rules, it has been made mandatory to generate Universal Account Number (UAN) for all inactive accounts. Members whose inactive or dormant accounts are not linked to UAN will have to visit EPFO ​​offices or special camps for biometric verification and photo capture. The aim of this process is to confirm the identity of claimants and prevent fraud.

Updating KYC

Members whose accounts are already linked to UAN but do not have the correct KYC (Know Your Customer) information will have to complete KYC seeding. This can be done either through their employer or directly at EPFO ​​offices. The process of generating UAN and updating KYC will now depend on the account balance, which will require approval from senior officials for the account.

New verification procedures

Under the revised SOP, a thorough verification process has been introduced to unblock inactive accounts. This process includes verification of digital and physical records. Apart from this, confirmation of the employer will also be necessary. Claims made from previously inactive accounts will be subjected to additional scrutiny. These changes have been made to increase the security of EPF accounts and prevent their misuse. EPFO ​​​​subscribers should be cautious about these new rules.