The Employees Provident Fund Organisation (EPFO) has rolled out new rules to tighten control over inactive and inoperative accounts. The updated procedures are aimed at reducing fraud and preventing unauthorized withdrawals.
Key Changes in EPFO Regulations
1. Classification of Accounts
- Transaction-less Accounts: Accounts with no transactions, excluding interest, over a specified period will be classified as ‘transaction-less.’
- Inoperative Accounts: Accounts that meet the criteria outlined under Para 72(6) of the EPF Scheme will remain classified as ‘inoperative.’
Both categories will now face stricter verification processes before any withdrawals or transfers can be processed.
2. Universal Account Numbers (UANs)
- All dormant accounts must now generate a UAN.
- Members with transaction-less or inoperative accounts lacking a UAN will need to visit EPFO offices or attend special camps for biometric verification and photo capture. This is to verify claimant identities and prevent fraudulent claims.
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3. KYC Details Update
- For accounts already linked to a UAN but lacking complete KYC details, members must update their KYC information. This can be done through employers or directly at EPFO offices.
- The approval process for UAN generation and KYC updates will depend on the account balance. Accounts with higher balances will require clearance from senior officers.
4. New Verification Processes
- Verification Steps: Accounts that were frozen will go through enhanced verification, including checking digital and physical records and obtaining employer confirmation.
- Crowdsourcing Approach: Confirmation from at least five out of 20 active UAN holders from the same establishment during the same period as the claimant is required. This aims to provide additional identity validation.
5. Claims Approval System
- Claims from inactive accounts will undergo additional scrutiny.
- Claims up to ₹25 lakh: Must be approved by the officer-in-charge.
- Claims above ₹25 lakh: Require approval from a senior officer.
These new regulations are designed to improve security and prevent misuse of EPF accounts. Subscribers should ensure their accounts comply with the updated rules to avoid delays or issues with their funds.