The Employer Provident Fund (EPF) enables employees to save taxes on their invested amount and ensure decent returns. However, high rejection rates of EPF claims continue to be a cause of concern. Indicating an improvement in the EPF claims settlement process, EPFO on Thursday said that the combined rejection and return ratio of EPF claims was 21.59% as of November 26, 2024.
“The EPFO has significantly enhanced its claim settlement processes! As of 26 November 2024, the combined rejection and return ratio was 21.59%. This includes 13.77% inadmissible claims, and Returns (deficiency in claims) stood at 7.82%. The final withdrawal claims reflect 11.92% rejections and 13.44% return cases,” read a post by EPFO on X.
Despite some improvement EPF claim rejection continue to be a major cause of concern especially for pensioners who miss out on their savings due to irregularities in their details.
Normally, claims are rejected because the applicant is ineligible for the type of withdrawal they had applied for. In case the claims are rejected because of a mismatch in information, claimants can resubmit their applications after making corrections.
When are EPF claims rejected?
Online EPF claims can be rejected for several reasons including mismatch of information related to bank account, personal details, etc. Here are the possible reasons that can lead to EPF claim rejections.
Mismatch in name
One of the main reasons for EPF claim rejections is a mismatch in the name. There are chances that the name mentioned on your Aadhaar document doesn’t match the documents you have submitted with your EPF claim. Carefully cross-check the spelling of your name and surname.
Date of Birth mismatch
Another detail that can cause trouble if it doesn’t align in all the documents is your date of birth. Make sure that your Aadhaar card, PAN card, and other documents have the correct date of birth.
Incomplete KYC
It is mandatory for all EPFO members to fully complete their KYC to avoid EPF claim rejections. Before making a claim in EPF, it is better for them to check whether they have performed their KYC or not.
Bank account
Make sure that your details are correct in your bank account. Always avoid giving details of a joint bank account. Because EPF claim can be rejected of the claimant has given details of his/her/their joint bank account which is held with a person who is not a spouse.
How to avoid EPF claim rejections?
EPFO members can make sure that their details like bank account number, date of birth, pan account number, Aadhaar number, bank account number, are updated EPFO Member Seva portal.
