EPFO’s Claim Settlement Reforms: A Boon for Over 7.7 Crore Members

The Employees’ Provident Fund Organisation (EPFO), under the Ministry of Labour and Employment, has announced 2 major simplifications to its claim settlement process. These changes aim to enhance the ease of living for over 7.7 crore EPF members and also ease the operational burden on employers.

Key Reform 1: No More Uploading of Cheque Leaf or Attested Passbook

Earlier, EPF members had to upload an image of their cheque leaf or an attested copy of their bank passbook when applying for claims. This process often led to complications such as claim rejections due to blurred, incomplete or unreadable uploads. Now, this requirement has been scrapped altogether.

According to official estimates, this step alone is expected to benefit around 60 million members instantly. It not only improves user experience but also reduces the volume of grievances related to rejected claims.

Key Reform 2: Bank Seeding Approval No Longer Required from Employers

Another significant change is the elimination of the need for employer approval when seeding bank account details with the Universal Account Number (UAN).

During the financial year 2024-25, approximately 13 million EPFO members submitted requests to seed their bank accounts. These requests had to undergo a verification process and then await employer approval, which typically took up to 16 days. The approval stage created a bottleneck, adding workload for employers and delaying the claim process for employees.

With the employer approval requirement now removed, EPFO expects a smoother and faster seeding process, thereby accelerating overall claim settlement timelines.

Current Status of Bank Seeding and Pending Approvals

As of now, out of the 77.4 million EPFO members making monthly contributions, 48.3 million have already seeded their bank accounts with their UAN. However, 1.49 million requests are still pending at the employer’s end. The recent reform is poised to clear such backlogs by removing the intermediary step of employer validation.

Objective Behind the Reforms

The underlying aim of these changes is to create a more efficient and member-centric EPF system. By cutting down on redundant paperwork and digital uploads, and reducing employer dependency, the EPFO is taking strides toward quicker claim settlements and minimal grievance redressal delays.

Conclusion

These reforms reflect the government’s broader push towards digital transformation and administrative ease in public service delivery. By streamlining the claim settlement process, EPFO is likely to make a significant difference to millions of working individuals who rely on their provident fund contributions as a vital financial resource.

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