EPFO self-attestation facility for KYC
In a significant development aimed at easing the process for its 80 million active members, the Employees Provident Fund Organisation (EPFO) is set to introduce a self-attestation facility starting in June. This new feature will eliminate the need for employer approval to complete the Know Your Customer (KYC) process. The KYC process is a one-time requirement that verifies the identity of subscribers by linking their universal account number (UAN) with their KYC details. Currently, employees must rely on their employers to approve their details before the KYC process can be finalized, which often leads to delays and complications.
The introduction of the self-attestation facility is expected to streamline the KYC process significantly. According to an official, the current system often results in wasted time as employees wait for employer approvals. In cases where a company has shut down, employees face additional hurdles, as they cannot obtain the necessary approval. The new facility will remove these bureaucratic obstacles, reducing paperwork and minimizing the rejection of claims. This move is part of EPFO’s broader efforts to enhance user convenience and improve operational efficiency.
In addition to the self-attestation feature, EPFO is undergoing a major transformation of its information technology (IT) infrastructure as part of its EPFO 3.0 initiative. This upgrade is designed to handle the anticipated increase in new subscribers following the implementation of three employment-linked incentive (ELI) schemes. The improved IT infrastructure will ensure that the organization can scale its services effectively to accommodate the growing number of members. Officials expect the number of active members to reach 100 million, and the enhanced system will play a crucial role in managing this expansion while maintaining service quality.
Another key feature of EPFO 3.0 is the potential introduction of a facility that will allow users to withdraw funds up to a certain limit without the need to file formal claims. This initiative is being developed in collaboration with various banks and aims to provide greater financial flexibility to EPFO members. By simplifying the withdrawal process, the organization hopes to reduce the administrative burden on both members and the system, making it easier for individuals to access their funds when needed.
Union Labour Minister Mansukh Mandaviya recently highlighted the organization’s efforts to create a more user-friendly platform. Speaking in Parliament last month, he emphasized that EPFO is working towards building a robust system that will enable members to withdraw their money seamlessly. He also mentioned plans to establish a redressal system similar to those used in the banking sector, which will address user queries and concerns more effectively. Mandaviya expressed confidence that EPFO 3.0, set to launch by March, will resolve most user-related issues and significantly improve the overall experience for members.
Overall, the introduction of self-attestation for KYC, the IT infrastructure overhaul, and the proposed withdrawal facility represent significant steps forward for EPFO. These initiatives are part of a broader strategy to modernize the organization and make it more responsive to the needs of its growing membership base. By reducing bureaucratic hurdles and enhancing digital capabilities, EPFO aims to provide a more efficient and user-friendly experience for its 80 million active members, with the potential to expand its services to 100 million members in the near future.