The Employees’ Provident Fund Organization (EPFO) has introduced new guidelines and regulations regarding dormant Employee Provident Fund (EPF) accounts to prevent unauthorized withdrawals and fraudulent transactions.
EPFO has identified accounts with no transactions (debit or credit other than interest) for at least three years as ‘transaction-less’ or ‘inactive’ accounts. Such accounts are subject to strict verifications before allowing any withdrawals or transfers.
After the member reaches the age of 58, their account is classified as an inoperative account. Interest is credited to this account until the age of 58. EPFO has outlined specific rules for such inoperative accounts, especially for accounts without a linked Universal Account Number (UAN) or lacking KYC verification.
Members with non-transacting accounts who do not have UANs are required to visit EPFO offices in person or attend special camps for biometric verification.
For accounts already linked to UANs, members need to ensure correct Know Your Customer (KYC) details are available. This can be done through their employers or directly with EPFO offices. The clearance process varies based on the account balance, with high-value accounts requiring approval from senior officials for UAN generation and KYC updates.
Regarding the settlement of claims for dormant accounts, EPFO emphasizes the need for vigilance and verification before allowing any withdrawals.
EPFO has implemented a comprehensive verification process for frozen EPF accounts, involving digital and physical record checks, employer verification, and a ‘crowdsourcing’ method for additional identity verification. Requests for withdrawals from previously inactive accounts now require approval from various levels of authorities, depending on the claimed amount.