New Guidelines for Handling Inoperative and Transaction-less EPF Accounts
To ease the process for Employees’ Provident Fund (EPF) account holders, the Employees’ Provident Fund Organisation (EPFO) has introduced new guidelines for inoperative and transaction-less EPF accounts. According to a circular issued on August 2, 2024, the EPFO has emphasized the need for stronger due diligence in handling transaction-less and inoperative accounts to prevent cases of impersonation, identity theft, or other fraudulent activities.
Definition and Handling of Transaction-less Accounts
Transaction-less accounts are those where no credit or debit transactions, except for periodic interest crediting, have occurred in three years. These accounts are considered inactive due to the absence of transactions for an extended period. Furthermore, the amended definition specifies that an account becomes inoperative 36 months after the retirement age of 55, which is at the age of 58.
EPFO’s circular outlines that unblocking such EPF accounts may take 20-25 days from the date of submission, depending on the account type and verification process. Additionally, the presence and status of Universal Account Numbers (UAN), member status, and KYC status can vary in transaction-less accounts, necessitating tailored handling procedures.
UAN Generation and KYC Seeding for Transaction-less Accounts
In instances where no UANs exist in transaction-less accounts, the initial step is to generate a UAN, which cannot be accomplished through regular procedures due to the prolonged account inactivity. Therefore, EPF account holders are required to physically visit the field office to initiate UAN generation or link the EPF account to an existing UAN. Scheduling appointments via the EPFiGMS portal facilitates this process, and in cases where physical visits are challenging, such as due to physical disability or old age, a request for UAN generation can be initiated through the portal, prompting a representative visit for biometric verification and UAN generation.
Following UAN linkage, the next crucial step involves KYC seeding for all accounts. To expedite this process, if the former employer is operational, EPF members must engage them to link their KYC. For cases where the previous employer is non-operational, the field offices have the authority to directly carry out the KYC process, utilizing PAN, Aadhaar, and bank account details of the EPF member.
Claim Filing and Additional Security Measures
Once the UAN is linked and the KYC process is completed, EPF members can request the unblocking of their accounts. To further fortify security and prevent fraud, the EPFO has introduced additional measures, including multi-source information gathering and verification alerts to active UAN holders who have worked in the same establishment during the same period as the claimant, requiring confirmation from five such holders.
Inoperative Accounts
The treatment of inoperative accounts, both with and without transactions, is detailed in the circular. It specifies distinct guidelines based on the duration of inactivity and the status of UAN and KYC seeding. EPF members are provided with detailed procedures for unblocking their inoperative accounts, including online request submission and physical visits to field offices, as well as employer and/or field office approvals where applicable.
Handling Deceased Members’ Accounts
In the event of an EPF member’s demise, the nominee can file a claim for the funds in the PF account, necessitating UAN generation, KYC seeding, and biometric authentication. The circular outlines the procedures for filing online claims, emphasizing the importance of e-nomination, verification by the old employer, and attestation by competent authorities where employer verification is unfeasible.
In conclusion, the new guidelines set forth by the EPFO aim to streamline procedures for EPF account holders with inoperative and transaction-less accounts, while reinforcing security measures and facilitating seamless account unblocking and claim filing processes. These proactive measures are essential in safeguarding the interests of EPF members and mitigating potential risks associated with dormant accounts.
