EPF and EPS scheme are the retirement saving schemes for salaried employees. This was brought into action by the Government of India in 1952. The EPFO organisation carries all the guidelines and procedures of the same. This has been brought into action to provide individuals with a certain sum of money to look after themselves once they retire from their services. And seriously committed individuals who contribute to the EPF scheme for at least 10 years are subjected to post-retirement monthly pension under the EPS scheme. So, as you look forward towards the EPF and EPS scheme, you look into how you would be able to receive the money on maturity that you saved under the scheme. Will you be able to receive money through postal order? Will you be able to receive money in cash or in your bank account? So, in this, we will cruise through this question.
Postal Withdrawal Facility Of EPF?
In the EPF account, you and your employer both pay 12 % of the basic pay you receive as your contribution to your EPF. This would account for 24% of basic pay. Out of this, 15.67% goes directly to your EPF account. Rest is contributed to your EPS account, which stands to be 8.33%. So, as the number of service years increases, the amount accumulated also increases, and since the withdrawal of this sum of money is in a lump sum manner. This stands to be a handsome sum of amount. So, earlier as the scheme was established, there was a norm by virtue of which a member was able to withdraw the sum through postal order. This was in practice for a long time; however, this process possessed some loopholes that other people could manipulate to fulfill their greedy needs with the withdrawal. This lead to frauds, and the benefits were not received by the individual who has earned it. Similar is the case with cash reimbursement.
So with the amendment in early 2000s, the EPF withdrawal was made only through a bank account. With these guidelines in action, the Employee has to fill a withdrawal form wherein the individual has to fill the bank account, bank address, IFSCcode, etc. The bank account in which the employee is asking for the withdrawal must be in the employee’s name only. If the bank account is not in the employee’s name, then the withdrawal is rejected, and the employee has to follow the same procedure from ground zero again.
Now with the advancement in technology and services, the same procedure has been shifted online through the EPFO portal. With this procedure in place, it has saved the employees from the worries of filing the withdrawal form. Now, you can claim all your withdrawals through this online portal created by EPFO. The first and foremost requirement for this to occur is that you should be registered with on the EPFO member portal with your UAN number. Without the UAN number, you would not be able to proceed with this process. Then you need to verify your KYC details and Bank account details. When you are through this process, you can file in the withdrawal with just a matter of clicks from your home’s comfort.
With modernization and digitisation, it becomes necessary to evolve and engage better practices to ensure better service delivery. Moreover, engage safe and secure practices that provide benefits to the individual who has earned it. The EPFO has followed the same steps by abrogating the withdrawal procedure through postal order and implementing the bank account procedure, as stated above.