EPFO Issues Guidelines for Reactivating Inactive Accounts

The Employees’ Provident Fund Organisation (EPFO) has introduced new guidelines to reactivate inoperative and inactive EPF accounts, as well as to simplify the process of correcting and updating personal details in member profiles.

Why it matters: These measures aim to prevent fraud, ensure proper verification, and streamline the management of EPF accounts, providing better protection for members and reducing delays in claim settlements.

The details:

• The new rules are designed to reactivate stagnant EPF accounts and implement proper verification processes to ensure money is credited to legitimate claimants.
• The EPFO has approved SOP version 3.0 for joint declaration requests, which are used to update or correct personal details in member profiles.
• All joint declaration requests must undergo strict due diligence to prevent cases of impersonation or identity theft.
• Profile changes are categorized into two types: Major and Minor, each with specific requirements for supporting documents.

Submission process:

• Members must submit the joint declaration request via their unified portal login.
• Requests will be time-stamped, with IP addresses recorded, and all documents will be stored on a server for future reference.
• Once submitted, the request will appear in the employer’s login portal, and an automatic email will be sent to the employer’s registered email address.
• Employers are responsible for verifying the submitted documents and uploading the required documents related to the request.

These changes are expected to make it easier for genuine members to correct their EPF account details, reducing complications in claim settlements.

What’s next: EPF account holders are encouraged to consult the official EPFO site or contact their employer for more details and updates on the new guidelines.

Full story

The Employees Provident Fund Organisation (EPFO) has issued new guidelines to reactivate inoperative and inactive EPF accounts. The measures aim to prevent fraud and ensure proper verification before money is credited into claimants’ bank accounts. The EPFO circular, dated August 2, 2024, stresses the need for thorough verification of EPF members with transaction-less accounts.

This directive is part of a broader effort to secure funds and maintain the integrity of the system. The new rules are designed to reactivate stagnant EPF accounts. Proper verification processes will be implemented to ensure money is credited to legitimate claimants.

The EPFO aims to prevent fraud and misuse of funds in inoperative accounts. These guidelines come in response to growing concerns over the safety and security of funds in inactive accounts. The EPFO’s initiative is expected to provide better protection for members and streamline the process of managing EPF accounts.

The EPFO has also unveiled new rules aimed at simplifying the process for employees to correct and update their details in their EPF accounts. According to a circular issued on July 31, 2024, the EPFO has approved SOP version 3.0 for joint declaration requests, which are used to update or correct personal details in member profiles. The new guidelines mandate that all joint declaration requests undergo strict due diligence to prevent cases of impersonation or identity theft.

The purpose of these guidelines is to provide a clear procedure for the receipt and processing of these requests by both members and employers.

Guidelines for reactivating EPF accounts

As the EPFO’s automated system matures, discrepancies in member profiles have increased, leading to rejection of claims, fraud, and delays in settlement.

To address these issues, the circular categorizes profile changes into two types: Major and Minor. For minor changes, at least two supporting documents must be submitted. For major changes, at least three supporting documents are required.

For Aadhaar-related changes, either an Aadhaar card or an E-Aadhaar card linked with an active mobile number will suffice. All corrections require documentary proof as specified in Annexure-I of the circular. Members can submit joint declaration requests for corrections through the Member e-Sewa portal.

However, these corrections are limited to data managed by the current employer, and employers do not have the authority to modify details of EPF accounts from previous or other establishments. Members must submit the joint declaration request via their unified portal login. Requests will be time-stamped, with IP addresses recorded, and all documents will be stored on a server for future reference.

Once submitted, the request will appear in the employer’s login portal, and an automatic email will be sent to the employer’s registered email address. Employers are responsible for verifying the submitted documents and uploading the required documents related to the request. These changes are expected to streamline the process and make it easier for genuine members to correct their EPF account details, reducing delays and complications in claim settlements.