EPFO: Money from Closed PF Accounts Will Be Deposited Directly Into Your Bank

G GOWTHAM
The Employees’ Provident Fund Organisation (EPFO) has announced a new step to streamline withdrawals from closed PF accounts. This initiative ensures that the money from inactive or closed provident fund accounts is transferred directly into employees’ bank accounts, eliminating delays and making the process more transparent.

Background

  • EPF accounts are maintained by EPFO to provide retirement savings and social security benefits to salaried employees.
  • Many employees close PF accounts after leaving a job, but the withdrawal process has sometimes been slow due to paperwork and verification requirements.
  • To address this, EPFO has updated its direct credit system for closed accounts.
Key Features of the Update

Automatic Direct Deposit

Money from closed PF accounts will now be directly credited to the employee’s bank account.

Eliminates the need for manual intervention or repeated follow-ups.

Faster Processing

The withdrawal process, which earlier could take weeks, is expected to become much faster.

Beneficiaries will receive real-time updates on transaction status.

Digital Verification

EPFO will rely on digital verification using Aadhaar-linked bank accounts.

Ensures accuracy and reduces chances of delays or errors.

Benefits for Employees

  • Convenience: Employees no longer need to visit EPFO offices or submit physical forms.
  • Transparency: Direct deposits are tracked and verified digitally, reducing chances of disputes.
  • Time-saving: The process is faster and more efficient, especially for ex-employees who have changed jobs multiple times.
  • Security: wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital transfers reduce the risk of lost cheques or misdirected payments.
How It Works

Account Closure: Employee submits a PF withdrawal request after leaving the organization.

Bank Details Verification: EPFO verifies the bank account linked to Aadhaar.

Direct Credit: Approved PF amount is transferred automatically to the employee’s bank account.

Notification: Employee receives SMS or email notification confirming the transfer.

Important Points to Note

  • Ensure your bank account is active and Aadhaar-linked to avoid delays.
  • Keep your contact details updated in the EPFO portal to receive alerts.
  • Closed accounts with incomplete KYC may require additional verification before money is credited.
Key Takeaways

  • EPFO’s new system simplifies PF withdrawals for ex-employees.
  • Direct bank transfers reduce delays, paperwork, and manual errors.
  • Employees should update Aadhaar and bank details to ensure smooth transfer of funds.
 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

For more interesting updates click and follow Indiaherald WhatsApp channel

Find Out More:

EPFO

Related Articles: