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EPFO Rule Changes: The central government’s Employees’ Provident Fund (EPF) scheme has over 70 million members across India. Unfortunately, some members passed away unexpectedly. In such cases, the Employees’ Provident Fund Organisation (EPFO) has provided major relief to the families of deceased members. Now, they will no longer have to wait long to withdraw the PF amount. A new circular regarding this change was issued yesterday.
The organisation has taken a major decision in the interest of the families of members who have passed away. The EPFO has now simplified the process of settling death claims.
According to a new EPFO circular, the PF amount will now be directly deposited into the bank accounts of the deceased member’s minor children. A Guardianship Certificate will no longer be required for this.
Until now, if an EPF member died, their family faced major challenges in withdrawing PF, pension, or insurance amounts. They had to obtain a guardianship certificate from a court, which could take several months to process along with other paperwork. This not only caused financial strain for families but also led to extensive running around for the family.
To ensure the claim amount is released smoothly, the EPFO requires that a separate bank account be opened in the name of each child of the member. The PF and insurance amount will then be deposited directly into these accounts. Once the claim amount is credited, it can be withdrawn without any difficulty.
EPFO uses a specific EPF Form 20, which is meant for withdrawing money from the PF account of a deceased member. This form can be filled by the nominee, legal heir, or guardian of the deceased member. It is used for making the final claim from the PF account.
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