The Employees’ Provident Fund Organization (EPFO) has introduced a major reform that eliminates the requirement for uploading a canceled check while withdrawing money from a Provident Fund (PF) account. This change aims to streamline the claims settlement process, benefiting nearly 80 million EPF members by expediting transactions.

Previously, EPFO members had to submit a photograph of a canceled check or a verified copy of their bank passbook when applying for online withdrawals. Additionally, employers were required to verify the applicant’s bank account details. With the latest modification, these requirements have been completely removed, significantly simplifying the withdrawal process.

• Faster Claim Settlements: The removal of these mandatory uploads will accelerate the processing of withdrawal claims, reducing unnecessary delays.

• Fewer Rejections: Many claims used to get rejected due to mismatched or unclear documents. With this requirement removed, the rejection rate is expected to decrease significantly.

• Easier Compliance for Employers: The new rule also simplifies the process for employers, making it easier for them to facilitate employee withdrawals without additional verification steps.

The Ministry of Labour and Employment stated that this initiative aligns with the government’s vision of enhancing ‘Ease of Living’ for employees and ‘Ease of Doing Business’ for organizations. By eliminating redundant document submissions, EPFO aims to improve efficiency and user experience.

This reform was initially launched as a pilot project on May 28, 2024, for a select group of EPF members who had updated Know Your Customer (KYC) details. Since then, approximately 17 million members have already benefited from the streamlined process. Given the success of the trial phase, EPFO has now extended the new rule to all members.

• No More Canceled Check Requirement: Members can withdraw PF funds online without needing to upload a check image or passbook photo.

• Employer Verification No Longer Needed: The withdrawal process will be faster as employer approval of bank details is no longer required.

• Widespread Impact: With 80 million EPF members, this change is set to benefit a large workforce in India.

• Government’s Commitment to Efficiency: The new measure aligns with India’s broader goals of digital transformation and process simplification.

With this progressive step, EPFO has significantly reduced the paperwork involved in PF withdrawals, ensuring a more seamless experience for employees across the country.