EPFO Introduces Updated Procedures For UAN Freeze, Defreeze

The Employees Provident Fund Organisation (EPFO) has introduced a new Standard Operating Procedure (SOP) for freezing and unfreezing accounts. According to the EPFO, accounts of individuals or establishments can be frozen for up to 30 days initially, with the possibility of extending this period by another 14 days. The organization issued these updated guidelines for […]

EPFO
by Avijit Gupta - July 6, 2024, 6:33 pm

The Employees Provident Fund Organisation (EPFO) has introduced a new Standard Operating Procedure (SOP) for freezing and unfreezing accounts.

According to the EPFO, accounts of individuals or establishments can be frozen for up to 30 days initially, with the possibility of extending this period by another 14 days. The organization issued these updated guidelines for users of Universal Account Number (UAN) on July 4.

The EPFO aims to enhance security by implementing multiple stages of verification for Member IDs (MIDs) and UANs to detect suspicious activities such as impersonations or fraudulent withdrawals.

What does it mean by freezing of an EPF account?

According to the information given, it means the deactivation of several categories, which include:

  1. Login to Unified Portal (Member/Employer)

  2. Developing a new UAN or linking MID to an existing UAN

  3. Any addition or changes to be made in member profile and KYC/Employer DSC.

  4. Any deposits with Appendix E, VDR special or VDR Transfer-in etc in MID.

  5. Any claims settlements, fund transfers or withdrawals.

  6. Registration of a new establishment on the same PAN or GSTN. It includes the Aadhaar/PAN/DSC of the employer.

De-freezing involves reinstating all categories that were suspended following a verification period conducted by authorities.

According to the EPF, these categories are designed to identify groups or individuals with Member IDs (MIDs), Universal Account Numbers (UANs), or establishments that require rigorous verification to ensure the security of funds.

 Category A:

Those Member IDs (MIDs), Universal Account Numbers (UANs), or establishments that are identified and regularly contacted by the Head Office.

Category B:

These establishments may encounter fraudulent withdrawals, including transfers or settlements to individuals not verified as members. This also encompasses any modifications to a member’s profile or KYC details.

Category C:

If any Member IDs (MIDs) or Universal Account Numbers (UANs) are processed through Appendix E, VDR Special, Special 10D, VDR Transfer-in, etc., without approval from a Competent Authority, or if the prescribed instructions were not adhered to.

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