The recession caused by the pandemic is hitting the working class in India hard. One way to save money with good interest rates is the Provident Fund (PF). It is a fund in which both the employee and the employer invest a certain percentage of the employee’s basic monthly wage. In principle, all or part of the money can be withdrawn from an EPF account when you retire or leave the company.
In view of the difficult circumstances for many during the pandemic, the EPFO (Employee Provident Fund Organization) has now made it possible for members to withdraw part of their total amount in the event of the COVID-19 crisis or unemployment. This amount can also be transferred from one company to another when changing jobs. An EPF account offers an 8.5% annual return.
However, if you want to claim your PF, avoid these 5 mistakes:
UAN Seed Bank Account: The UAN (Universal Account Number) should be included in the bank account number. If your account is not activated, you may have difficulty obtaining funds. Other than that, the IFSC number given on EPFO records should be correct.
Incomplete KYC: If an account holder’s KYC is incomplete, your request may be denied. Your KYC information must also be validated. By logging into your E-Service member account, you can determine whether the KYC is complete and confirmed.
Incorrect date of birth (DoB): If the date of birth (DoB) entered in EPFO and the date of birth entered in the employer file do not match, your application can be rejected. The EPFO previously issued a circular on April 3, relaxing the criteria for changing the date of birth reported on EPFO records and associating UAN with Aadhaar. You can change your date of birth for the next three years.
An indispensable UAN aadhaar link: It is also necessary to combine UAN with aadhaar. If your UAN and Aadhaar are not linked, your EPF withdrawal request may be rejected. There are four methods to link a UAN or EPF account to Aadhaar. You can also link it at home.
Incorrect bank account details: The PF claim money will be transferred to the same account that is documented on EPFO records. So when filing a claim, be sure to carefully fill out the account information. Your request will be rejected if you provide the wrong account number or a different account number.
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