How to avoid rejecting EPF withdrawal claims?

In March, the Employee Provident Fund Organization (EPFO) announced that members can withdraw money from their EPF corpus to overcome financial emergencies caused by the coronavirus-induced blockade. Since then, thousands of people have submitted requests to withdraw money from their EPF accounts. While the money has been credited to the bank accounts of many of those people, there are others whose claims have been rejected.

Members have visited EPFO’s various social media pages to find out why their claims have been rejected.

EPF withdrawals, requested due to coronavirus-related emergencies or for any other reason, may be refused for various reasons. Once you have filed a claim to withdraw money from your EPF account, the EPFO ​​will verify the details as mentioned in the claim with your records and also if your claim meets the required conditions, before disbursing the amount.

If the details do not match the EPFO ​​records, then your claim request could be rejected. Below are five reasons why your EPF withdrawal claim may be rejected and what you should do to avoid rejecting a claim.

Remember, the withdrawal of the claim will be credited to the bank account that is registered in the EPFO ​​records. Therefore, before filing your EPF withdrawal claim, you should verify your bank account details recorded in the records. Incorrect bank account details will delay credit of withdrawn funds.

EPFO, in its official Twitter identifier, has asked members to ensure that the bank details in EPFO’s records are correct and that the account is linked to UAN. (UAN stands for Universal Account Number).

Also, the IFSC mentioned in the EPFO ​​records must be correct. If you have given the wrong IFSC, it will delay the credit.

One can verify the bank details recorded in EPFO ​​records by logging into their account on the e-Sewa member portal in the ‘KYC’ section on the ‘Manage’ tab. If the bank account or IFSC is wrong, you will be asked to correct the details. Once the correct details are updated in the EPFO ​​records, they must also be verified by your employer.

When filing your EPF withdrawal claim online, you must provide the scanned copy of the bank account check that is recorded in EPFO’s records. Make sure the scanned copy of the check is clear and visible.

Also read:
How to verify, update the bank account details in the EPF account?

Another reason for rejection of your EPF claim withdrawal may be due to incomplete KYC. If your KYC details are not complete and verified, then EPFO ​​may reject your EPF withdrawal claim. Aarti Raote, partner, Deloitte India says: “It is important that your KYC is complete and verified in your EPF account not only to make an account withdrawal but also for other purposes such as making a contribution to your account, account transfer, by nomination etc. ”

An EPF member can log in to their member e-Sewa account to verify if the KYC is complete and verified. Raote says: “Even if you submit documents related to KYC, your employer will need to verify them before EPFO ​​verifies them and updates them in its records.”

It is also necessary to provide PAN to EPFO ​​for the final settlement of PF in case the service period is less than five years.

If there is a mismatch between the date of birth in EPFO’s records and your employer’s records, it may lead to the rejection of your withdrawal claim.

Recently, through a circular issued on April 3, the EPFO ​​simplified the rules to correct the date of birth in the EPFO ​​records and therefore link UAN with Aadhaar. According to the circular, EPF members can now correct their date of birth up to plus or minus three years instead of one year earlier.

Also read:
How to correct the name, the date of birth in the EPF account?

• Non-UAN link with Aadhaar

If you are looking to file a coronavirus related EPF withdrawal claim, then one of the eligibility criteria is that your Aadhaar must be verified and linked to your UAN. If your UAN is not linked to Aadhaar, your EPF withdrawal claim will be rejected.

There are four ways to link your UAN or EPF account with your Aadhaar. You can use any of these methods at your convenience.

Also read:
How to link UAN with Aadhaar

• Breach of conditions

If an EPF member is filing a financial emergency tide claim due to coronavirus, then three conditions must be met: (a) UAN must be activated, (b) Aadhaar must be verified and linked to UAN and (c) Bank account with Correct IFSC must be seeded with UAN.

Making a claim due to an emergency related to COVID-19 does not require such a waiting period nor must such conditions be met. Raote says: “As part of the COVID measure to ease hardship, all employees are allowed to obtain a non-refundable retirement on the basis of basic wages and cost allowances for three months or up to 75 percent of the amount remaining on your credit in the EPF account, whichever is less. ”

However, if the EPF withdrawal claim is filed due to any other reason, such as loss of job, marriage, etc., then there are additional conditions that must be met.

Raote says: “If the claim is filed after quitting work, then one must ensure that the claim is filed one month after the last contribution date. Only 75 percent of the amount found can be withdrawn. PF account. In addition, the departure date must be updated in the EPFO ​​database. ” Similarly, if you want to withdraw from your EPF account to buy a home, make sure you have completed 5 years of service.

Therefore, one must ensure that other conditions are met, when applicable, when filing the claim.