Last Updated: February 12, 2023, 14:23 IST
A portion of the EPF savings is also paid as pension to the employees after their retirement.
EPFO keeps on revising the rules regarding the withdrawal from provident fund accounts from time to time
Before submitting the EPF withdrawal claim you should verify multiple factors like your KYC details and linking of Aadhaar number with UAN. The Employees’ Provident Fund Organisation, which manages the EPF accounts, allows partial withdrawal of the savings under certain conditions. The aim of the EPF scheme is to create a corpus fund for the employees in the private sector for their retirement life. A portion of the EPF savings is also paid as pension to the employees after their retirement.
As recently mass layoffs have been seen across sectors, and especially in the IT industry, many of the laid off employees may need to withdraw their EPF savings. An EPF account holder is allowed to withdraw upto 75% of the corpus after one month of remaining unemployed and the remaining 25% can be withdrawn after two months of unemployment.
Even before losing job, many employees, can partially withdraw the EPF amount for medical emergency, higher studies, and house construction.
However, in many cases, the Employee’s Provident Fund withdrawal claims are rejected by the EPFO due to multiple reasons.
The Employees Provident Fund Organisation (EPFO) keeps on revising the rules regarding the withdrawal from provident fund accounts from time to time. Currently, the process has become quite hassle-free and you can file your claim online.
Before submitting the EPF withdrawal claim you should consider the following factors to avoid rejection.
Reasons For Rejections of EPF Withdrawals
One of the main reasons for denial of a withdrawal claim is that the details given do not match the records available with EPFO. The name and date of birth of the claimant should be matching with the EPFO record.
This is one of the reasons even when details are accurate. If in case your KYC details are not complete and verified, EPFO reserves the right to reject the withdrawal claim. So, to avoid the delay or rejection of requests repeatedly, it is suggested to complete the KYC formalities before applying for withdrawal.
Aadhaar and UAN not linked
For withdrawal purposes, seeding of Aadhar and UAN is required, without which the request can be declined by EPFO, a statutory body looking after all things related to provident funds in India.
Bank Details Not Updated
Another possible reason for the denial of a request can be the non-updation of bank details. PF account holders are required to give the operational bank account number and IFSC code on the EPFO portal. For any settlement, EPFO asks the claimant to ensure bank account details in the login section are correct.
If your signature does not match the one available in official records, there is no possibility of withdrawing the money from your PF account. So, to avoid any delays you must ensure your signature is not only clear but must match the official records.
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