EPFO New Rules: Link Bank Account with UAN Without Employer Approval – Know the Latest Update

EPFO New Rules: EPFO has introduced new reforms, allowing members to link their bank accounts with UAN without employer approval. Learn about these changes and how they simplify the claim settlement process.

Taking forward the initiative to provide facilities to the members of the Employees Provident Fund Organization on the lines of banking, two major reforms have been made to further simplify the EPFO ​​​​claim settlement process.

The first reform in this is the removal of the requirement to upload a picture of the check leaf or verified bank passbook. The second change is that the EPFO ​​​​has removed the requirement of employer approval to link bank account details with Universal Account Number (UAN).

The Ministry of Labor told how many people will get the benefit

The Ministry of Labor shared the information about the implementation of these reforms of the success of the pilot project in EPFO ​​​​as a whole by issuing a statement. More than 7.7 crore members of EPFO ​​​​will get the benefit of removing the requirement to upload the picture of the cheque-bank passbook.

At the same time, the removal of the requirement of the employer’s approval to link bank account details with UAN will provide immediate benefit to about 15 lakh members with pending approval. This requirement was initially slightly improved on a pilot basis for some KYC-updated members.

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EPFO New Rules: Why was the new rule brought?

According to the ministry, since its launch in May 2024, this move has benefited 1.7 crore EPF members. Since the name of the bank account holder is already verified with the details of the EPF member at the time of linking the bank account with UAN, this additional document is no longer required. At the same time, the requirement of the employer’s approval to link bank account details with UAN has been removed because, at present, every member is required to link their bank account with UAN so that their PF withdrawal can be deposited seamlessly into such an account.

So many requests come every day to link bank accounts

It is worth mentioning that about 36,000 requests are being made by members to link bank accounts every day, and it takes an average of 3 days for banks to complete the verification. However, the average time taken by the employer to approve the process after bank verification is about 13 days. Due to this, the workload increases at the employer level, and there is a delay in linking the bank account.

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According to EPFO, out of the 7.74 crore members who currently contribute every month, 4.83 crore members have linked their bank accounts to UAN. While 14.95 lakh approvals are pending at the employers’ level. Both these reforms will also facilitate those members who want to change the already linked bank account by entering their new bank account number.