The Employees’ Provident Fund Organization (EPFO) has introduced new rules to better manage and secure dormant accounts.
The updated standard operating procedure (SOP) aims to curb fraud and unauthorized withdrawals by implementing a stricter verification process for these accounts.
Classification of Accounts
Low Transaction Accounts
Accounts with no credit or debit (excluding interest) over a specified period are categorized as ‘no transaction accounts.’
Inactive Accounts
Accounts that meet the criteria set under the EPF scheme are classified as ‘inactive.’ Both types of accounts will now require verification before any withdrawals or transfers can be made.
Mandatory Universal Account Number (UAN)
The new rules mandate the generation of a Universal Account Number (UAN) for all inactive accounts.
Members with inactive or dormant accounts not linked to UAN must visit EPFO offices or special camps for biometric verification and photo capture to confirm their identity and prevent fraud.
Updating Know Your Customer (KYC) Information
Members with accounts linked to UAN but lacking correct Know Your Customer (KYC) information must complete KYC seeding through their employers or directly at EPFO offices.
The UAN generation and KYC update process will now depend on the account balance and require approval from senior officials.
New Verification Processes
The revised SOP includes an intensive verification process for unblocking inactive accounts,
involving both digital and physical record checks and employer confirmation.
Claims from previously inactive accounts will face additional scrutiny to enhance the security of EPF accounts and prevent misuse.
EPFO subscribers should stay informed about these new rules to ensure compliance and protect their accounts.
