EPFO Introduces Major Claim Settlement Reforms

On 4th April 2025, the Ministry of Labour & Employment announced two major reforms by the Employees’ Provident Fund Organisation (EPFO) to enhance ease of living for members and reduce delays in claim processing.

Key Points

EPFO eliminates need for cheque/passbook uploads: Members are no longer required to upload an image of a cancelled cheque or an attested bank passbook when filing online claims.
Pilot reform now extended to all: Initially launched as a pilot on May 28, 2024, for KYC-updated members, the reform now benefits all 6 crore EPF members.
Reduced claim rejections: Removal of document upload requirement eliminates issues caused by poor-quality or unreadable images, improving claim settlement efficiency.
Bank account name verification already done: Since name verification happens during UAN-bank account seeding, additional documentation is no longer needed.
Employer approval for bank account seeding removed: EPFO has done away with the requirement for employer approval (via DSC or e-sign) after bank verification.
Faster processing: This reform will reduce delays—banks take ~3 days for verification, while employers took ~13 days, causing a backlog.
Immediate relief for pending cases: Approximately 14.95 lakh pending employer approvals will now be resolved automatically.
Simplified update process: Members can now update their bank account details using Aadhaar OTP authentication.
Ease of Living & Ease of Doing Business: These reforms align with the government’s vision to improve service delivery for employees and employers alike.