EPFO Launches New Regulations To Prevent Illegal Withdrawals From PF

In the past, the EPFO has undertaken numerous initiatives to ensure employees render adjustments to the account details of the Provident Fund (PF). The EPFO specifically specified the steps for correcting the name, the name of the father, date of birth, and so on. Now, though, certain improvements in the method are being carried about by EPFO. The adjustments will be categorized as minor and significant adjustments and the adaptation will have to be conducted appropriately. The necessity to implement new rules is because certain instances of unauthorized withdrawals from the PF accounts were found by EPFO. Adjustments in the profile of the member were enabled to fix the mistakes in name, name of father/husband, DOB and gender, EPFO said. Full name and profile modifications have, though, been found to proceed to unauthorized withdrawals in some instances. In the proper process of the online or offline process, a full alteration of the member profile can not be permitted even in special cases when it has been demonstrated that the name of the member has been updated without the due process required by statute, or there has been an incorrect upload of records of the employee by the employer, the issuance of supporting documentation by the employee and employer and upon complete authentication. The following instructions are given by EPFO in order to discharge previous guidance concerning the modification of KYC.

Minor changes

• If the adjustment applies to modifying the name/surname from abbreviation to full name, or vice versa, without modifying the first letter, if the spelling of the name does not change after the adjustment has been made.
• If the name of the father or husband in Aadhaar is placed as a middle name.
• If it only entails a change in the surname of female employees upon marriage.

Major changes

All those instances which do not come under the 'Minor change' range, or any correction resulting in a complete adjustment in the name/father name, or which requires a modification in more than two sections.

The regulator eligible to authorize adjustments for "Minor" and "Major" will be

• For minor or small changes: APFC/RPFC II
• For significant or major changes: RPFC-I/RPFC-II(OIC)

Significant changes as mentioned above shall not be rendered in the online phase without appropriate documents being obtained, including the employer's statement, and proof of the authenticity of the case as found necessary by the RPFC I/RPFC II (OIC).
In the situation of a sealed/closed establishment where the employer or the designated signatory is not identifiable, one of the specified authorities shall certify the joint statement and make a change maintaining appropriate caution, and only after careful confirmation of the documents provided as the proof of identity, employment, and so on.

• If the joint declaration is approved by the employer, original documents such as the employee's record, increment orders, salary slip, appointment document, any appeal made to the EPF office to fix the incorrect name in form-23, etc. should be issued, on the grounds of which the employer certifies the request for correction.
• In the context of a closed organization, the individual may be requested to provide documents, such as an appointment letter, salary slip, increment certificate, a PF-slip and any request for a valid name in form 23.
• It is also required to submit certain other documents that the authority thinks necessary Authentication may also be achieved by EO.

Note: To make withdrawals from EPF, you need to consider some rules. Click here for the same: