EPFO Update: PF Withdrawals Get Easy With These Two Major Changes

The Employees’ Provident Fund Organisation (EPFO), one of the two main social security agencies under the Government of India's Ministry of Labour and Employment, has rolled out two major reforms to simplify its claim settlement process.  According to the latest update shared by EPFO, the changes will help ease PF withdrawal process for the provident fund beneficiaries.

PF Withdrawal Process: What Has Changed?

While announcing the reforms, Mansukh Mandaviya, Minister of Labour and Employment, posted on X, “Under the leadership of PM Shri @narendramodi ji, EPFO continues its reform journey! Two major reforms have been introduced to make the claim settlement process simpler, faster, and hassle-free for crores of EPF members & employers." 

The move was welcomed by several people on social media platforms. “These reforms will simplify processes for crores of EPF members, ensuring faster and hassle-free claim settlements,” said CA Naresh Kella.

Another user, Ravi B said that delays and roadblocks cause pain and anxiety and urged the minister to ‘remove such obstacles for claims’.

EPFO Latest Changes

Change 1: EPFO, which is responsible for the regulation and management of provident funds in India, has done away with the necessity to upload a cheque leaf or an attested bank passbook for online claims. Initially introduced as a pilot study on May 28, 2024, this change has already benefited 1.7 crore EPF members and is now extended to all, the ministry has said. 

Change 2: Additionally, EPFO has also eliminated the need for employer approval for linking bank accounts with UAN after verification by banks. Previously, employer approvals led to constant delays, with over 14.95 lakh requests pending. 

From now on, EPFO members can update their bank details using Aadhaar OTP verification, making the process faster, seamless and easier. EPFO has urged members to take advantage of this simplified system for quicker claim processing and account updates.