In a bid to protect EPF subscribers against frauds, the EPFO has come up with new guidelines for freezing and defreezing of EPF accounts. The same has been proposed as the retirement fund body believes that it is important to freeze some or all of the operations concerning Member ID, UAN and establishments at places which are prone to fraud or have confronted fraudulent instances.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Likewise, it has introduced the SOP or Standard Operating Procedure:

Here’s what the recent SOP mentions:

As per the latest SOP, it is mandatory to complete the verification of frozen EPF account within 30 days with an option to extend this deadline by another 14 days.  For the verification, the Member ID together with the UAN will be needed according to the SOP.

In a case if the retirement body comes to know that certain EPF accounts show signs of potential illicit transactions or simply speaking may see fraud then the said account will need to go through multiple verification steps in lieu of the ID, UAN and associated institutions. 

This process is designed to safeguard the money in these accounts. The EPFO has set a 30-day time limit for freezing the account of each individual or establishment for verification, with an extension of up to 14 days if necessary.

What is freezing of EPF accounts?

The EPF account is frozen for protecting subscribers’ funds as well as to ensure verification against any fraudulent acts or instances until such instances are ascertained and genuineness known.

Thereafter, as and when the verification process is complete, the funds are made available in the right account and then the authority overseeing the process would be required to allow transactions in the said account after informing the person concerned.

What is defreeezing of EPF account?

It is the process of activating the frozen EPF account operations once the verification is done and found genuine within the guided timeframe.