The Employees’ Provident Fund Organisation (EPFO) has announced that provident fund members can now update and approve their bank account details without requiring employer intervention. The EPF update is expected to reduce delays in withdrawals and improve efficiency for millions of contributors across India, according to a circular issued in April 2025.
What the Policy Change Means
Direct Bank Verification
Under the revised procedure, members can log into the Universal Account Number (UAN) portal, update their bank details, and complete the process once their bank verifies the account. Employer digital signatures are no longer mandatory.
This change eliminates the earlier requirement for uploading a cancelled cheque or attested bank passbook copy. The EPFO stated that automation and integration with banking systems will allow faster and more reliable verification.
Impact on Withdrawals and Claims
The move is expected to shorten settlement times for provident fund withdrawals, which previously averaged 10 to 13 days due to pending employer approvals. Faster account verification will also reduce the risk of rejections caused by administrative bottlenecks.
Why the Change Was Introduced
Addressing Delays and Complaints
For years, employees reported delays when employers did not respond promptly to approval requests. By placing responsibility directly on bank verification, the EPFO has removed a key obstacle to timely fund access.
An official statement from the EPFO said the decision was taken to “streamline member services and reduce dependency on third-party approvals.”
Expert Commentary
Rituparna Chakraborty, co-founder of staffing firm TeamLease, told the Economic Times that the policy “marks a significant shift in empowering employees and reducing reliance on employers for routine financial updates.”
Labour economists also noted that faster access to provident fund savings could improve financial security for workers, especially during emergencies.
Implementation Details and Member Guidance
Steps for Members
- Log in to the UAN member portal.
- Navigate to Manage → KYC → Bank.
- Enter account number, IFSC code, and bank details.
- Submit for direct bank verification.
- Once verified, the account will be linked without employer approval.
Potential Challenges
Members must ensure that their bank details, Aadhaar information, and UAN records match exactly. Any mismatch in name or IFSC code could still cause rejection. In such cases, manual intervention may be required.
Reactions from Stakeholders
Employer associations welcomed the change, noting it would reduce their administrative burden. Trade unions, however, urged the EPFO to strengthen safeguards against fraud, warning that reduced oversight could expose members to risks if bank verification systems are compromised.
Vishwas Patel, a labour law expert, told Business Standard that “the success of this reform depends on robust integration between EPFO systems and banks. Members must also remain vigilant about updating accurate details.”
Broader Context
The EPFO manages one of the world’s largest social security funds, serving over 270 million members and holding assets worth more than ₹19 lakh crore. The latest update is part of a wider digitalisation drive aimed at modernising employee benefits and ensuring quicker service delivery.
Conclusion
The removal of employer approval for bank detail verification under the EPF update marks a pivotal step in simplifying provident fund operations. While the reform promises faster withdrawals and reduced delays, its effectiveness will rely on strong bank-EPFO coordination and accurate member data.
