The Employees Provident Fund Organisation (EPFO) has implemented new rules to strengthen control over inactive and inoperative accounts, aiming to curb fraud and unauthorised withdrawals.

The updated standard operating procedure (SOP) introduces a more rigorous verification processes for accounts with prolonged inactivity.

Classification of accounts

Under the revised regulations

Transaction-less accounts: Accounts with no credits or debits (excluding interest) for a defined period will be categorised as ‘transaction-less.’

Inoperative accounts: Accounts meeting the existing criteria under Para 72(6) of the EPF Scheme will continue to be classified as ‘inoperative.’

Both types of accounts will now undergo enhanced verification before any withdrawals or transfers can be processed.

Mandatory universal account numbers (UANs)

A major change is the requirement for all dormant accounts to generate a universal account number (UAN).

Members with transaction-less or inoperative accounts without UANs must visit EPFO offices or attend special camps for biometric verification and photo capture.

This procedure is designed to verify the identity of claimants and prevent fraudulent claims.

Updating KYC details

For accounts already linked to UANs but missing accurate know your customer (KYC) details, members are required to complete KYC seeding.

This can be done either through their employers or directly at EPFO offices.

The approval process for UAN generation and KYC updates will now depend on the account balance, with higher-value accounts needing clearance from senior officers.

New verification processes

The revised SOP introduces a thorough verification process to unblock frozen accounts.

This process includes:

• Verification of digital and physical records.
• Employer confirmation.

The crowdsourcing approach requires confirmation from at least five out of 20 active UAN holders from the same establishment during the same period as the claimant.

This aims to ensure additional identity validation.

Approval system for claims

Claims from previously inactive accounts will be subjected to additional scrutiny.

The approval process will vary based on the claim amount:

• Claims up to ₹25 lakh will need to be cleared by the officer-in-charge.
• Higher claims will require approval at a senior officer level.

These changes are designed to enhance security and prevent misuse of EPF accounts.

Subscribers should be aware of these new requirements and ensure their accounts are compliant with the updated regulations.