EPFO news: EPF claim settlements up 21% in November. Are your claims rejected? Tips to avoid rejection
The EPF allows tax savings and decent returns, but claim rejections remain high. As of November 26, 2024, the rejection and return ratio is 21.59%, with issues mainly due to mismatched personal details and KYC completion.
The Employee Provident Fund (EPF) allows employees to save on taxes on their contributions and provides decent returns. However, high rejection rates of EPF claims continue to be a cause of concern. Indicating an improvement in the EPF claims settlement process, EPFO on Thursday said that the combined rejection and return ratio of EPF claims was 21.59 per cent as of November 26, 2024.
“The EPFO has significantly enhanced its claim settlement processes! As of 26 November 2024, the combined rejection and return ratio was 21.59%. This includes 13.77% inadmissible claims, and Returns (deficiency in claims) stood at 7.82%. The final withdrawal claims reflect 11.92% rejections and 13.44% return cases,” read a post by EPFO on X.
Despite some improvement, EPF claim rejections continue to be a major cause of concern, especially for pensioners who miss out on their savings due to irregularities in their details.
Also Read | EPF has issues. Can you say no to it?
Normally, claims are rejected because the applicant is ineligible for the type of withdrawal they have applied for. In case the claims are rejected because of a mismatch in information, claimants can resubmit their applications after making corrections.
When are EPF claims rejected?
Online EPF claims can be rejected for several reasons, including a mismatch of information related to bank accounts, personal details, etc. Here are the possible reasons that can lead to EPF claim rejections.
Mismatch in name
One of the main reasons for EPF claim rejections is a mismatch in the name. There is a chance that the name mentioned in your Aadhaar document doesn't match the documents you have submitted with your EPF claim. Carefully cross-check the spelling of your name and surname.
Date of Birth mismatch
Your date of birth is another detail that can cause trouble if it doesn't align with all the documents. Make sure that your Aadhaar card, PAN card, and other documents have the correct date of birth.
Incomplete KYC
It is mandatory for all EPFO members to fully complete their KYC to avoid EPF claim rejections. Before making a claim in EPF, it is better to check whether the KYC is updated or not.
Bank account
Make sure that your bank account details are correct. Always avoid giving a joint bank account. EPF claims can be rejected if the claimant has given details of his/her joint bank account, which is held with a person who is not a spouse.
How to avoid EPF claim rejections?
EPFO members can ensure that their details, like bank account number, date of birth, PAN account number, Aadhaar number, and bank account number, are updated in the EPFO Member Seva portal.
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Business NewsMoneyPersonal FinanceEPFO news: EPF claim settlements up 21% in November. Are your claims rejected? Tips to avoid rejection
First Published:28 Nov 2024, 01:16 PM IST
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