EPFO reports a 21.59% combined rejection and return rate for claims, citing ineligibility and errors. Learn why claims are rejected or returned and how to address them.
The Employees’ Provident Fund Organisation (EPFO) plays a crucial role in managing provident fund accounts and claim processes for millions of employees in India. However, with a combined rejection and return ratio of 21.59% reported as of November 26, claimants often face hurdles during the process. Here’s an overview of why claims may be rejected or returned and how to resolve these issues efficiently.
Reasons for EPFO Claim Rejections
Claims are rejected primarily due to two main factors:
- Ineligibility for Withdrawal or Advance:
Claims that do not align with the withdrawal or advance criteria set by the EPFO are rejected. For example, attempting to withdraw funds prematurely or for purposes not permitted under EPFO rules can lead to rejection.
- Non-Compliance with EPFO Rules:
Requests that fail to meet the stipulated requirements or lack sufficient documentation are disqualified.
Why Claims Are Returned for Corrections
In some cases, claims are not outright rejected but returned for corrections. Common reasons include:
- Mismatched Bank Details:
- Incorrect account numbers or IFSC codes often cause delays.
- Incomplete KYC:
- Failure to link Aadhaar, PAN, or bank details to the Universal Account Number (UAN) results in claims being flagged.
- Errors in Personal Information:
- Discrepancies in name, date of birth, or other personal details can lead to claims being returned.
How to Address Rejected or Returned Claims
Resolving issues with EPFO claims requires a systematic approach:
- Check the Rejection or Return Reason:
- The EPFO provides specific reasons for rejection or return in the claim status update. Review these details carefully.
- Verify Eligibility:
- For rejected claims, ensure that you meet the eligibility criteria for the type of withdrawal or advance requested.
- Fix Highlighted Errors:
- For returned claims, correct any deficiencies in your submission. Update bank details, KYC information, or personal details as needed through the EPFO member portal.
- Resubmit the Claim:
- Once corrections are made, reapply via the EPFO member portal or the UMANG app for quicker processing.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
