EPFO has been highly involved in transforming the entire member interaction; especially regarding EPF withdrawals. The digitalization of the whole claim process has increased transparency and convenience.
To start with, the entire claim amount would be directly credited to your bank account registered with EPFO. EPFO has provided for electronic or digital fund transfer/payment of EPF benefits, pension disbursement and insurance claim.
Such move is likely going to benefit 4.5 crores EPF subscribers and around than 54 lakh pensioners.
Now, you as a PF member will be benefited through electronic or digital fund transfer system. It will ensure quick transfer of funds. Additionally, keeping track of funds flow will become easier and reconciliation thereof.
Before digitalization of EPF process, it was cumbersome to transfer PF balances upon a job change. It required submission of documents to the employer; he would then forward it to EPFO. The entire process used to consume time and efforts.
Several inconsistencies prevailed in the form of generation of multiple member IDs. One individual used to possess multiple PF accounts scattered across his previous employers.
But now, things have simplified to a large extent. You can transfer your PF balances online to the new company without any hassles. Also, you may consolidate multiple member IDs or multiple PF accounts. For doing this, you need not visit your previous employers or field office of the EPFO. The PF transfer can be performed from anywhere with the help of a click.
You may request download and print PF updated account balance statement any time. Moreover, you can initiate a full/partial withdrawal claim process online without the intervention of the employer.
You can perform all the above functions and lot more if you have an active Universal Account Number (UAN). But there’s a catch here. You have to fulfil one small requirement. You need to keep your KYC information updated.
The most important component of KYC is the Aadhaar number. Now, EPFO has made it mandatory for all the members to link Aadhaar number with UAN. Unless the Aadhaar number is seeded in the EPFO database, you won’t be able to request PF withdrawal claims online.
All about e-KYC
KYC implies “Know Your Customer”. Nowadays, to avail financial services of banks, insurance companies, mutual funds, EPFO and any other financial institutions, you need to be a KYC compliant customer.
Simply put, the said institution requires verification of Proof of Identity (PoI) and Proof of Address (PoA) to give you access to its financial products. In India, UIDAI is authorised to provide an e-KYC service. In this, KYC process can be performed electronically.
Using Aadhaar, UIDAI provides your basic demographic data to the EPFO for PoI and PoA along with your photograph which is digitally signed. The process of e-KYC is meant to reduce transaction costs and risk of forged documents.
Documents necessary for KYC at UAN Portal
EPFO has specified a total of eight documents which can be used for KYC compliance. These are as follows:
1. Bank Account Number with IFSC code
2. Permanent Account Number (PAN)
5. Driving License
6. Voter ID/Election Card
7. Ration Card
8. National Population Register
Steps to Link Aadhaar with UAN online
1. Visit the UAN member online portal
2. Login to your EPF Account using UAN, Password and Captcha.
3. In the UAN window, click on “Manage” tab. From the drop-down menu select “KYC” option.
4. A “KYC” window appears. Here you get options to update a range of documents as specified by the EPFO. You can update your bank account, PAN, Aadhaar, Passport, Driving License, Election Card, Ration Card and National Population Register.
5. Right now, you need to link Aadhaar with UAN. Select the box on the left side of Aadhaar. Enter your Aadhaar Number and Name as it appears in the Aadhaar document. Afterwards, click on “Save” button given at the bottom of the window.
In case you face any issue at this stage, the reason could be a mismatch between your credentials provided to the EPFO and UIDAI (Aadhaar). Any inconsistency might prevent smooth Aadhaar updation. You need to intimate your employer regarding this and get it sorted out as soon as possible.
6. Upon saving the Aadhaar details, you can view it under the “Pending KYC” window. It takes around 15 days to get it approved from the employer. Upon approval, your Aadhaar will be shown in “Approved KYC” tab.
Steps to Link Aadhaar with UAN offline
Employees and pensioners were facing a lot of problems, particularly at the village level while linking Aadhaar to EPF online. Hence, EPFO has come up with the facility to update Aadhaar offline.
In collaboration with (CSC) Common Service Centers, the EPFO has developed an Aadhaar seeding application. The Common Services Centers are information and communication technology enabled front end service delivery points.
CSCs have been established at the village level to render Government and private services. With the implementation of Aadhaar Seeding Application, a Provident Fund member or a pensioner can approach any of the field offices of EPFO or CSC outlets.
The individual needs to possess his UAN & Aadhaar card. Then he can smoothly get his Aadhaar number seeded with the UAN.
Importance of linking Aadhaar to UAN
By following a few easy steps, you can get your Aadhaar linked to UAN. It will help you in being aware of the course of transactions taking place in your PF account. Also, it will expedite the exercise of career transition on changing jobs. Finally, you will get a holistic view of your finances for a sound retirement planning.
EPFO is trying to uncomplicate the matters about EPF withdrawals and claims processing. It has even established a grievance redressal procedure to attend to PF-related complaints. Now, the onus of getting your UAN related issues sorted falls on your shoulders. In case you haven’t made a move yet towards linking Aadhaar with UAN, then time has come to join the league.