The Employees' Provident Fund Organisation (EPFO) has implemented a new rule to streamline the process of claiming EPF benefits after a member's death. The new rule aims to address difficulties faced by field offices in updating or rectifying Aadhaar details posthumously. The EPFO announced that claims can now be processed without Aadhaar seeding, facilitating easier access to EPF benefits for the families of deceased members. This relaxation is contingent upon approval from the Officer in Charge (OIC) via an e-office file, which must document the verification procedures undertaken.
Verification and due diligence
The OIC's approval requires meticulous verification of the deceased member's details and the legitimacy of the claimants. Additional due diligence measures, as directed by the OIC, are required to prevent fraudulent withdrawals.
Applicability and guidelines
The relaxation applies to cases where member details are accurate in the Universal Account Number (UAN) but are inaccurate or incomplete in the Unique Identification (UID) database. For cases where Aadhaar data is correct but discrepancies exist in the UAN, field offices must follow specific guidelines outlined in previous circulars.
Issues faced by field offices
Field offices encountered several challenges, including:
- Inaccurate or incomplete member details in Aadhaar records.
- Lack of Aadhaar information for cases prior to its implementation.
- Deactivated Aadhaar accounts.
- Technical problems in validating Aadhaar through the UIDAI database.
Temporary allowance for physical claims
The new provision allows physical claims to be processed without Aadhaar seeding, subject to OIC approval and thorough verification. This temporary allowance is specifically for death cases, aiming to expedite the claims process and reduce delays caused by Aadhaar-related issues.
Steps for processing claims without Aadhaar seeding
- Obtain approval from the OIC through an e-office file.
- Conduct detailed verification to confirm the deceased member's membership and the authenticity of the claimant.
- Implement due diligence actions to prevent fraudulent withdrawals, as directed by the OIC.
The EPFO's new rule, detailed in a circular released on May 17, 2024, aims to address the procedural bottlenecks and provide timely financial support to the families of deceased EPF members.
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