Great relief has come to the employees, who withdraw their provident fund money. Now, there is a change in the rule and the withdrawal procedure has been simplified. Employees can withdraw their provident fund money without the employers’ permission.
Withdrawing their PF was a cumbersome exercise for the employees as it required the employee to route his withdrawal request through the employer as employer attestation. The process led to unwanted delays as many employees preferred to give up their PF money.
Various steps had been taken by the Employees’ Provident Fund Organization (EPFO) to make EPF accounts more user friendly. A new rule has been set up by the organization and with the new rule; the legal requirement of getting prior approval from employers is no longer a necessity.
EPFO has introduced the Adhaar linked EPF withdrawal. The new method of EPF withdrawal does not need any verification through the employer. The process is as simplified as it is as easy as filling bank withdrawal slip.
A statement from EPFO states if details like bank account and Aadhaar number are linked to your Universal Account Number (UAN) and know-your-customer (KYC) verification is done by the employer (using digital signature), then an employee can approach directly EPFO for withdrawal using UAN (this is a unified EPF account under which you can park all your EPF money even when you change jobs, thereby making sure portability of EPF money from one organization to another).
The main requirements needed for this super easy facility is that one have to fulfill the following conditions.
- Having the UAN is a must. UAN is allotted by the EPFO. You can check UAN status online. Even, you can generate UANas well.
- You must have given the bank account and Adhaar number into UAN database.
- The employer should have verified the Adhaar number of employee.
No question related to your identity and KYC details are asked in this new procedure of EPF withdrawal. The EPFO verifies your identity with Adhaar data and deposit the money into the account authenticated by the employer. But for the online facility, the Unique (portable PF) Account Numbers (UANs) of the user should be seeded with Aadhaar numbers, including the bank account details. It is very important for the employers to verify the bank details and Adhaar number while they are in the service.
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