EPFO set to introduce self-attestation facility for completing KYC
New Delhi, Jan 9, 2025 | 8:23 PM IST
KYC is a one-time process that helps in the identity verification of subscribers by linking the universal account number (UAN) with KYC details
In a major relief for its 80 million active members, the Employees' Provident Fund Organisation (EPFO) is set to introduce a self-attestation facility starting June, eliminating the need for employer approval to complete the Know Your Customer (KYC) process.
KYC is a one-time process that helps in the identity verification of subscribers by linking the universal account number (UAN) with KYC details. Currently, employers must approve their employees' details for the KYC process to be completed.
“Providing this facility will help members complete the process with much ease as currently, a lot of time is wasted in getting approval from employers. Many times, if a firm has closed, the member cannot get the approval, leaving them in limbo. The new facility will eliminate such paperwork and reduce the rejection of claims as well,” an official said.
Apart from this customer-friendly feature, to be launched under EPFO 3.0, the social security organisation is also upgrading its IT infrastructure to manage the added burden of new subscribers who will join in the wake of implementing the three employment-linked incentive (ELI) schemes.
“One of the features of EPFO 3.0 will be the thrust on scalability. The improved IT infrastructure will help the organisation offer better services to its members. As new members start joining the social security net, and we expect active members to reach 100 million, it will be of great help,” the official added.
Additionally, under EPFO 3.0, the retirement fund body is considering introducing a facility in partnership with various banks that will allow users to withdraw money, up to a certain extent, without filing claims.
Union Labour Minister Mansukh Mandaviya told Parliament last month that EPFO is working to build a robust platform to enable users to withdraw their money without any hassle.
“We are working to create a redressal system akin to the banking system. By March next year, we will be able to launch EPFO 3.0, through which we can address almost all user queries,” he added.
[The Business Standard]
