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EPFO's New Circular: Settlement of physical claims without seeding of Aadhaar for certain classes of members
EPFO's New Circular: Settlement of physical claims without seeding of Aadhaar for certain classes of members

December 2, 2024

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EPFO's New Circular: Settlement of physical claims without seeding of Aadhaar for certain classes of members

The Employees’ Provident Fund Organisation (EPFO) has issued a new circular aimed at addressing long-standing challenges faced by specific categories of members in settling claims due to Aadhaar-related hurdles.

What the Circular Says

The circular outlines provisions to facilitate claim settlements for members who are unable to meet the Aadhaar seeding requirement. These include:

  1. International Workers (IW):
    Workers who have left India after completing their assignments but did not obtain Aadhaar are now allowed to submit their passports as alternate identification for claim processing.
  2. Indian Workers Migrated Abroad:
    Indian workers who have permanently moved to another country and obtained foreign citizenship can submit citizenship identification documents for their claims.
  3. Citizens of Nepal and Bhutan:
    Workers from Nepal and Bhutan who are employed in establishments under EPFO but do not reside in India can use their citizenship identification certificates as valid documents.
  4. Non-Resident Indians (NRIs):
    While NRIs are encouraged to apply for Aadhaar (as the residential condition of 182 days is waived for them), alternate provisions are made for claim processing when Aadhaar is not available.

To streamline the process, physical claims can now be submitted along with the prescribed alternate identification documents, while ensuring:

  • Generation of a Universal Account Number (UAN) for all members.
  • Verification of documents and bank accounts.
  • Employer confirmation for claims exceeding ₹5 lakh.

Benefits of the Circular

This progressive step by EPFO ensures that all members, irrespective of their location or residency status, can access their rightful dues without unnecessary delays. Key benefits include:

  1. Increased Accessibility:
    Members who face logistical or eligibility challenges in obtaining Aadhaar are no longer left out. The use of alternate IDs makes the process inclusive.
  2. Faster Grievance Redressal:
    The circular helps settle long-pending claims promptly, reducing member dissatisfaction and grievances.
  3. Risk Mitigation:
    Rigorous due diligence measures, including document verification and employer confirmation, ensure authenticity and prevent misuse.
  4. Global Workforce Adaptation:
    By addressing the needs of international workers and foreign nationals, EPFO demonstrates its adaptability to a globalized workforce.

The EPFO’s circular is a welcome initiative, balancing the Aadhaar mandate with practical challenges faced by certain member categories. By enabling alternate identification and ensuring robust verification, the circular underscores EPFO’s responsiveness to member welfare and operational efficiency. This step not only simplifies claim settlements but also reinforces trust among EPFO’s diverse member base.


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