In May 2024, the Employees’ Provident Fund Organization (EPFO) introduced new guidelines to simplify the process of handling physical claims for deceased EPF account holders. These guidelines eliminate the requirement to link an Aadhaar card, addressing the challenges field offices faced in verifying and updating the Aadhaar details of a deceased EPF subscriber’s death.
In the circular dated May 17, 2024, the pension fund body declared, “However, this concession is contingent upon obtaining approval from the Officer in Charge (OIC) via an e-office file. The file must meticulously document the verification procedures undertaken to authenticate the deceased’s membership and the legitimacy of the claimants. This protocol is to be executed in conjunction with additional due diligence measures, as directed by the OIC, to mitigate the risk of fraudulent withdrawals.”
This means that physical claims in death cases can be processed without Aadhaar seeding, but they require approval. This approval must come from the OIC through an e-file. Additionally, strict verification is required. Although producing Aadhaar details isn’t mandated, a detailed verification will still be carried out to verify the deceased member’s identity and confirm the legitimacy of the claim.
The EPFO circular added, “In cases where Aadhaar data is correct but inaccurate or incomplete in the UAN, field offices must meticulously follow the guidelines delineated in Paragraphs 6.9 and 6.10 of JD SOP version-2 dated 26.03.2024. This involves rectifying the data in the UAN, seeding, and validating/authenticating the Aadhaar, in alignment with the instructions outlined in the prior circular dated September 24, 2020.”
The core issue lies in the mismatch between the information in the EPFO’s UAN database, which stores members’ provident fund details, and the UID database, which holds the relevant Aadhaar details.
The new EPFO rules specifically aim to address issues arising from discrepancies between a member’s details in the UAN database and the UID database, particularly in cases of death. Inaccurate Aadhaar details in the UID database on the death of a member create obstacles for field offices when verifying and processing physical claims for the provident fund amount. These discrepancies lead to delays for nominees or legal heirs in receiving their rightful dues.
The latest EPFO regulations, which enable physical claims for death cases without Aadhaar seeding, aim to simplify the process in such situations. Although Aadhaar seeding is recommended, the EPFO emphasises timely fund disbursement to beneficiaries by permitting alternative verification methods with OIC approval.
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Published: 23 May 2024, 09:31 AM IST