Guide to Add, Update, or Change Your EPFO Bank Account

Introduction

Maintaining accurate bank account details in your EPFO account is crucial for seamless management of your Employee Provident Fund (EPF). The EPFO, overseeing India’s largest retirement scheme, plays a pivotal role in facilitating savings for retirement across a vast membership base. With over 6.43 crore members, EPFO is internationally recognized for its robust social security contributions. It is mandatory to be aware of the EPFO updates on a regular basis.  The latest EPFO updates have focused on improving the online experience for users, making it easier to manage their EPF accounts, check balances, process EPF withdrawal online, and update bank details without visiting a physical branch. Updating bank details ensures that deductions from salaries are correctly allocated to respective PF accounts, vital for claiming retirement benefits without obstacles.

Is It Important to Maintain Accurate EFPO Bank Account Details?

Employee Provident Funds Organization (EPFO) manages: 

• India’s largest retirement scheme, the Employee Provident Fund (EPF), allowing employees to save for retirement.
• It boasts over 6.43 crore members, making it globally recognized in social security.
• Updating bank account details on the EPFO account is mandatory for all EPF holders, including name, address, contact number, nominee, and bank details.
• Deductions from salaries are deposited into respective PF accounts.
• Accurate details in the EPF account are crucial for claiming retirement benefits.
• Incorrect or outdated bank information can hinder withdrawals or transfers from the PF account.
• EPFO provides multiple avenues for beneficiaries to update their bank details through its official service portal.

Checking EPF balance has never been easier. EPF members can now view their EPF balance online through EPFO portal or UMANG app. After logging in with your UAN and password, you get access to the balance statement, which provides details of contributions from both the employer and the employee. This transparency helps members track their retirement savings and plan their finances accordingly.

How to Add Bank Account Details in EPFO?

All relevant information related to an employee’s provident fund has been comprised under EPF accounts.

To update your bank details on the EPFO member portal, firstly, you need to add bank account in EPFO:

• Visit the EPFO member portal and log in using your valid credentials such as UAN  (Universal Account Number) and password. Authenticate with an OTP.
• After logging in, navigate to the ‘Manage’ option in the top menu and select ‘KYC’.
• Choose the bank option in the KYC menu and enter necessary details including name, account number, and IFSC code.
• Verify the entered IFSC code to ensure accuracy. The bank name and branch details will be automatically displayed.
• Click ‘Save’ and verify the change with Aadhar authentication OTP. Enter the OTP and submit.
• Once saved, your bank details will appear under ‘Pending KYC’. The application will be reviewed by your bank and then forwarded to your employer for approval.
• Submit required documents to your employer. Upon verification, the status will change to ‘Digitally Approved KYC’, and you will receive a confirmation message on your registered mobile number.

How to Update Bank Account Details in EPFO? 

Updating your EPF bank details is a straightforward process that can be done conveniently online, eliminating the need to visit your local EPFO ​​branch. Here’s a step-by-step guide to walk you through the steps: 

• Access EPFO ​​Website: Start by visiting EPFO ​​official website. Once there, find and click on the ‘UAN Member e-Seva’ option prominently displayed on the home page.
• Login: Use your unique UAN (Universal Account Number), password and security code provided to login to your EPFO ​​account securely.
• Go to KYC Section: Once you’ve signed in, go to the ‘Manage’ tab in the menu bar. Select “KYC” from the drop-down menu that appears.
• Update Details: You will now be redirected to a new page specifically for updating your KYC (Know Your Customer) details. Continue here to make the necessary bank details updates adhering to EPFO updates.
• Enter Bank Information: Select your bank from the given options and accurately enter the basic details like account name, IFSC code and account number.
• Verify IFSC Code: After entering your bank details, click on the ‘Verify IFSC’ button. After successful verification, a confirmation message will appear on the screen. Click ‘OK’ to continue.
• Check and Save: Recheck that all the information you have entered is correct. When you are satisfied, check the box to confirm the accuracy and save the updated data.
• OTP Verification: One Time Password (OTP) will be sent to your registered mobile number. Enter this OTP in the field provided and click ‘Submit’ to verify the changes made.
• Approval Process: Your updated application will go through a two-step approval process. It will be reviewed and approved by your bank initially. Subsequently, your employer will verify the submitted documents. Once both approvals are successfully completed, you will receive an SMS notification.

With these steps, you can effectively update your bank details associated with your EPF account and ensure that all information is accurate and up-to-date without having to physically visit EPFO offices. 

What is the Procedure for EPF Withdrawal Online?

The proposed EPF withdrawal rules for 2024 aim to regulate EPF account management, covering contributions from both employers and employees. With the new rules, EPF withdrawal online has become more streamlined. Employees can now apply for partial or full withdrawals through the EPFO’s online portal. The online system supports withdrawals for various reasons, including medical emergencies, higher education expenses, or purchasing a home. To initiate an online withdrawal, members need to log in to the EPFO portal using their UAN and password, navigate to the withdrawal section, and follow the on-screen instructions to submit their request.

Key provisions include:

• Withdrawal after retirement: EPF funds are accessible only post-retirement, not during employment, unlike standard bank accounts.
• Partial Withdrawals: Online requests for partial withdrawals are permitted for urgent needs such as medical expenses, higher education, or property purchase/construction.
• Pre-Retirement Withdrawals: EPFO allows withdrawal of up to 90% of the EPF corpus one year before retirement for subscribers aged 54 or above.
• Withdrawal during unemployment: Funds can be withdrawn during unemployment, with 75% available after one month and the remaining 25% upon re-employment.
• Tax Exemption: EPF withdrawals are tax exempt after continuous contributions for at least five years.
• TDS on Premature Withdrawals: TDS deductions apply to premature EPF withdrawals, except for amounts under Rs. 50,000. With PAN, TDS is 10%; without PAN, it’s 30% plus applicable taxes.
• Online Status Check: EPF status can be checked online via EPFO if UAN and Aadhar are linked and approved by the employer.
• Declaration of Unemployment: Subscribers must declare unemployment to initiate EPF withdrawal online.
• Previous Rule: Previously, 100% EPF withdrawal was possible after two months of unemployment under different regulations.

These rules ensure EPF withdrawals are managed rigorously, safeguarding retirement savings and providing crucial financial assistance in emergencies and job loss situations. With these steps, you can effectively do EPF withdrawal online and ensure that all information is accurate and up-to-date.

Conclusion

In conclusion, updating and maintaining accurate bank details in your EPFO account is not only a regulatory requirement but also a prudent step towards securing your financial future. By following the straightforward online procedures outlined in EPFO updates, EPF members can ensure that their bank information is up-to-date and accessible for necessary transactions and withdrawals. This proactive approach not only safeguards against administrative challenges but also ensures timely access to funds when needed, supporting financial stability during critical periods like retirement or unforeseen emergencies.