EPFO’s new rule simplifies claim process: Nominees can now withdraw funds without Aadhaar
The Employees’ Provident Fund Organisation (EPFO) has introduced a significant new rule that enables nominees to withdraw money without the requirement of Aadhaar details. This development aims to simplify the process for processing EPF claims for deceased members and addresses challenges faced by field offices in rectifying and updating Aadhaar details following a member’s demise.
Background and purpose of the rule:
The EPFO’s decision to allow nominees to withdraw funds without linking Aadhaar details comes as a response to complications faced by field offices in processing claims for deceased members. The rule aims to streamline the claim settlement process and minimize delays caused by inaccuracies or incomplete Aadhaar information.
Key highlights of the new rule:
- Exception for Physical Claims: Field offices can now process physical claims without Aadhaar seeding upon receiving approval from the Officer in Charge (OIC) through an e-office file. This exception is granted under specific circumstances and requires thorough documentation to verify the deceased member’s membership and claimant legitimacy.
- Verification and Due Diligence: The new rule emphasizes the importance of conducting due diligence measures to prevent fraudulent withdrawals. Field offices must ensure the genuineness of the claimants and verify the accuracy of the deceased member’s details before processing the claim without Aadhaar seeding.
- Applicability and Guidelines: The rule applies to cases where member details are accurate in the Universal Account Number (UAN) database but inaccurate or incomplete in the UID database. Field offices must strictly adhere to the guidelines outlined in the Joint Director’s Standard Operating Procedure (SOP) to rectify data discrepancies and validate Aadhaar information.
Implications and benefits:
- Efficient Claim Settlement: By allowing nominees to withdraw funds without Aadhaar details, the EPFO aims to expedite the claim settlement process and provide timely financial assistance to the rightful claimants.
- Reduced Administrative Burden: The new rule simplifies the documentation requirements for processing claims, reducing the administrative burden on field offices and enhancing operational efficiency.
- Enhanced User Experience: Nominees and dependents of deceased EPF members will benefit from a more streamlined and accessible process for withdrawing funds, ensuring a smoother experience during challenging times.
The EPFO’s new rule allowing nominees to withdraw money without Aadhaar details represents a significant step towards improving the efficiency and accessibility of the claim settlement process for deceased members. This development underscores the EPFO’s commitment to enhancing service delivery and ensuring timely support for beneficiaries in times of need.