PF claim rejection rate of 34%: Why?
- The rejection rate of final provident fund claims rose to nearly 34% in 2022-23. In the age of Aadhaar, this is inexplicable.
In a country that boasts of an elaborate identity platform in Aadhaar that serves as a basis for our much-vaunted digital public infrastructure, it’s hard to grasp why the rejection rate of final provident fund (PF) claims should rise from about 13% in 2017-18 to nearly 34% in 2022-23, as reported. This hit the spotlight after a retired man who waited nine years for his dues took his life in frustration last month.
The Kochi office of the Employees’ Provident Fund Organisation (EPFO), which had reportedly rejected the man’s claim on account of an ID mismatch, released his savings soon after his death. With PF accounts Aadhaar-linked and EPFO dealings having gone online, its identity validation should have gotten easier and internal processes faster. Yet, even if the Kochi case is aberrative, the high PF rejection rate suggests something is amiss.
Could it be that a heavy focus on identity, brought about by a big regulatory push for know-your-customer details across the financial sector, is going against the stated intent of easing our lives? While cross-linked databases may serve valid aims of governance, tiny discrepancies can play havoc. Let’s face it: a human interface still matters.
