Four things that can delay the PF’s advance

At the end of March, the government came to the aid of people facing a shortage of cash due to the confinement linked to covid-19, by allowing them to take a non-refundable advance from the Employees’ Provident Fund (EPF). According to data released by EPF Organization on April 28, 740,000 such claims have been settled. However, it seems many others who have made a similar request are still waiting to receive their money. Many followers have taken to social media to complain about delays in receiving money or claims being denied.

Employees are allowed to withdraw up to 75% of the outstanding balance from their PF accounts or three months base plus dearness allowance, whichever is lower. For example, if you have a balance of 1 lakh to your PF account and your base salary plus dearness allowance equals 20,000 per month, you can only withdraw 60,000.

EPFO clarified that even employees who have left their jobs can benefit from the advance. Employees can apply for the advance under these claims online. However, it is generally advisable not to withdraw from PF savings, as this will significantly deplete your retirement savings. But it may be better to dip into the FP’s savings rather than take out a personal loan with interest rates that can be between 9 and 24 percent.

“Applications filed under covid-19 are resolved in an expedited manner and within three working days,” EPFO ​​said, in a statement accompanied by FAQs (frequently asked questions) published on April 26.

So what explains the delay and rejections? “All claims filed online go to EPFO’s National Data Center and are processed from there. However, in case of discrepancy, claims are sent to regional offices for settlement,” one of the officers said. EPFO field worker from the Gurugram office, on condition of anonymity, as the deposed agents are not authorized to speak to the media.

Here are some of the reasons leading to the delay or rejection of the application.

Unclear scanning of documents

When filing an application online, an employee must upload a scanned copy of the checkbook, passbook first page, or bank account statement, which must include the applicant’s name, bank account number, and IFSC code. . This is done to ensure that the bank details uploaded in the KYC (know your customer) or linked to the employee’s Universal Account Number (UAN) are correct and no erroneous money transfers occur.

If the scan of the document is unclear, it is difficult to match the details with what is provided against the employee’s UAN. This may cause a delay as EPFO ​​will ask you to upload the scanned copy again. “Most delays or rejections are due to inappropriate documents uploaded by employees,” the field agent said.

So, upload a clear scan of the document showing the bank account details.

bad details

Sometimes details such as the bank’s IFSC code or the account mentioned during the claim do not match what is seeded with the UAN. This may be because the wrong information was entered when seeding the account details with the UAN or because the subscriber wants the amount to be credited to another account, which is not linked to the UAN.

“It is also possible that the bank account linked to the UAN has become inactive. Hence, the person will need to update their bank details. Updating bank details can be done online,” said Saraswathi Kasturangan , partner at Deloitte India.

However, any changes to KYC details must be approved by the employer. “Employers can approve changes online using their digital signature, but sometimes employers cannot access their system due to the ongoing lockdown, which can cause a delay,” said the field officer from the EPFO ​​quoted earlier.

Not meeting the criteria

To qualify for the non-refundable advance, employees must have contributed for at least three months. If you do not meet these basic criteria and still file a claim, your claim may be rejected.

The time taken by the banks

EPFO processes complaints and remits checks to the bank within three days of the application of the complaint. Banks usually take an additional one to three days to credit the money to the employee’s account. So check if the delay is on the side of the bank.

Keep in mind that it is important that your paperwork is in order and your records match what is sown with your UAN for a hassle-free withdrawal.

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