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At the start of the COVID-19-necessitated lockdown, the labour ministry had issued a notification on 29 March 2020 stating that subscribers of the Employee Provident Fund Organisation (EFPO) could withdraw a portion of their retirement savings.
Details of how a subscriber can make the withdrawal can be found here.
The ministry allowed subscribers to make a withdrawal of upto 75 per cent of their savings or up to a maximum of three months’ basic pay and dearness allowance from their PF account–whichever is lower.
While reports suggest that lakhs of subscribers have opted for this and made a withdrawal, many others have been unable to do so because their claim was rejected. If you are amongst the latter, read on to understand why that might have happened.
Things To Know
• Once a subscriber has filled out the application form to make a withdrawal, the EPFO office will verify the details and ascertain whether or not all conditions are met before disbursing the payment.
• In case there is any mismatch in the form and the details with the EPFO office, the claim is likely to be rejected without any intimation to the subscriber.
Reasons For Rejection Of Claim
1. Incorrect bank details
Subscribers will have to fill out the bank details in the withdrawal form, as mentioned in the EPFO records. It is also essential that the account is linked to the Universal Account Number. If not, then the claim will not go through.
Finally, the IFSC mentioned in the EPFO records should be accurate. Mentioning the incorrect IFSC code can lead to rejection or delay in the claim being processed.
How to verify bank details?
Subscribers are advised to check the bank details registered in the EPFO records by logging into their account here. They are also required to provide a scanned copy of a cheque of the bank account that is registered in the EPFO records.
2. Incorrect date of birth
A mismatch between the date of birth mentioned in the EPFO records and that mentioned in the employer’s records could lead to the rejection of the claim. If you wish to rectify the mismatch, you can do so by logging into the official portal.
Do note, that as per the circular, subscribers can now correct their date of birth up to plus-minus three years instead of one year earlier. You can click here and read an article on how to edit the information mentioned in the EPFO portal.
3. Incomplete Know Your Customer (KYC)
In case you have not completed the KYC procedure, the claim you raise is liable to be rejected. If your KYC has not yet been completed and verified, you will need to do so by logging into the official portal here. Once you submit your claim, an OTP will be sent to your Aadhaar linked mobile for verification.
4. Unclear scan of documents
Subscribers must ensure that while filing a claim online, a scanned copy of the cheque book, the first page of the passbook or the bank account statement, which mentions the name of the subscriber is also uploaded. This is to make sure that the bank account details uploaded in the KYC are accurate and that no erroneous bank transfer takes place.
In case the documents uploaded are not clear, or there is a mismatch in details between what the records hold and what has been uploaded, the claim is likely to be rejected.
5. Link UAN to Aadhaar
One other reason for which your claim can be rejected is the non-linking of your Aadhaar details with the UAN. Your Aadhaar number should not only be linked but also verified, and the details mentioned in the Aadhaar card must match that mentioned in your PF account details.
If you need to read about how to link your Aadhaar details to your UAN, then click here.
(Edited by Gayatri Mishra)