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.
Accounts are divided into 2 categories
Low Transaction Accounts: Accounts which have no credit or debit (excluding interest) in a specified period are categorized as ‘no transaction accounts’.
Inactive accounts: Accounts which fall under the criteria already laid down under the EPF scheme will be put under the ‘inactive’ category. 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.
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Updating KYC
Members with accounts that already have UAN linked but do not have the correct Know Your Customer (KYC) information will have to complete KYC seeding. This can be done either through their employers or directly at EPFO offices. The process of UAN generation and KYC update will now depend on the account balance, with the account requiring approval from senior officials.
New verification processes
Under the revised SOP, an intensive 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 required. Claims made from previously inactive accounts will face 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.
