Problem Of PF Withdrawal
EPF withdrawal has been a pain. The rejection is frequent. Employer’s non cooperation is common. The delay in processing is a norm. EPFO itself has set a 20 day limit for EPF withdrawal but It takes 1-2 month. The online EPF withdrawal facility can end these woes.
The Ease of Online Process
The online banking has given so much ease. Now we don’t visit to the banks. Similarly e-filing has changed the whole experience of income tax return filing. Now we can e-file income tax return within 15 minutes. Then, why not the EPF. Why should it remain attached to the employer? Why do we require to request to the HR department for EPF withdrawal? Can’t it be a simple procedure?
If a signature can withdraw crores of rupees, why can’t we get the EPF corpus easily. After all it is our money. We contribute 12% of the salary every month for the EPF corpus.
Wait for Online PF Withdrawal
Adhaar Of Online PF Withdrawal
Thankfully, The online EPF withdrawal facility will eliminate most of these problems. The marrying of UAN and Adhaar number is going to make it possible. The UAN is the unique authentication number given to every employee. It does not change with the change of job. The UAN has solved the problem of PF transfer.
The EPFO is brainstorming over the implementation of online PF withdrawal before November 2015. A meeting of EPFO trustees is also called.
KYC Seeding Hurdle
The KYC seeding is the biggest hurdle in the way of online PF withdrawal. Last year EPFO has allotted UAN to 4 crore subscribers within 3 months. But seeding of KYC with the UAN is very slow. The employer and employee are to seed the KYC details. But the response from the employer has been tepid. Till now only 12% UAN has been seeded with the KYC, while at least 40% KYC should be seeded. Without Seeding of KYC, EPFO can’t give the online PF withdrawal facility.
Till now the employer’s verify the authenticity of each employee who applies for PF withdrawal. The online PF withdrawal facility will reduce the role of Employers. Rather, It would rely on the KYC given by the employee. The employer needs to verify the KYC upfront. So that, the online EPF withdrawal process can bypass the employer at the time of withdrawal.
To push the online PF withdrawal facility for subscribers, EPFO has become the registrar of Unique Identification Authority of India (UIDAI) for enrollment. It is also an online authentication user agency of the Authority.
Indeed, Adhaar is the only document which can be verified online. It also carries your biometric data. Using the Adhaar data the EPFO can easily verify the employee without going to the employer. Therefore, withdraw EPF online, you must give the Adhaar number to the EPFO