Are your EPF deposits at risks? The EPFO has come out with new rules for freezing and de-freezing of EPF accounts which show any chance of fraudulent withdrawal.
Is your EPF account safe? Is there a chance of fraudulent withdrawal from your EPF account? The Employees’ Provident Fund Organisation (EPFO) has updated its Standard Operating Procedure (SOP) for freezing or de-freezing of EPF accounts.
Also Read– Electricity Bill Scam: Doctor Lost Rs 6 Lakh; Safety Tips By Delhi Discoms For Consumers
Also Read- Electricity Bill Scam: Doctor Lost Rs 6 Lakh; Safety Tips By Delhi Discoms For Consumers
The retirement fund body feels that it is imperative to freeze some or all of the operations in respect of Member ID, Universal Account Number (UAN) and establishments, “where there is a chance of fraudulent withdrawal or an attempt to fraud or having committed the fraud”.
“A precautionary verification mechanism is prerequisite to mitigate risks involved because of possible frauds, impersonation and forgery. The first and the foremost action would thus be to protect the capital or its flight from an account,” the EPFO said.
Also Read– Gold Rate Falls In India: Check 22 Carat Price In Your City On July 10
What is Member ID?
Member ID (MID) is a unique identity that links member profile to the individual member’s EPF account during an employment.
What is UAN?
The UAN is a permanent 12-digit unique number allotted to an EPF member and it remains valid throughout the life of a member.
Read More: LPG eKYC Update: Oil Minister Says No Mustering Of Customers At Showrooms Of LPG Distributorships
What is freezing of EPF account?
Freezing is carried out to protect the members’ funds and also to ensure proper verification as well as investigation of any fraudulent attempts or acts, till such time the facts are ascertained and genuineness established.
Once the verification process is over, the funds are protected and made available in the rightful account, the competent authority would need to allow transactions as well as inform the concerned.
What is de-freezing of account?
De-freezing refers to restoring the frozen operations and found genuine after verification in a given time frame and duly authorised by authority.
Read More: Refund Over Rs 2.5 Crore To Consumers Affected During Covid Lockdown: CCPA Directs Yatra
What does the latest SOP say?
The SOP has mandated that the verification of frozen EPF accounts needs to be completed within 30 days, giving an option to extend this deadline by additional 14 days. This measure is aimed at safeguarding members’ accounts. The verification of frozen accounts will require Member ID and Universal Account Number (UAN), according to the SOP guidelines of the retirement fund body.
In a bid to protect members from any financial fraud, the EPFO has updated its SOPs for freezing and de-freezing of accounts. If it comes to EPFO’s notice that certain accounts show potential fake transactions or fraud, the said accounts will have to undergo several verification steps for the Member ID, UAN, and associated institutions. This process is designed to safeguard the money in these accounts. The EPFO has set a 30-day time limit for freezing the account of each individual or establishment for verification, with an extension of up to 14 days if necessary.
