EPFO settles 1.37 lakh COVID-19 claims in less than 10 days

- April 11, 2020

The provision for a special withdrawal from the EPF Scheme to fight Covid-19
pandemic is part of the PMGKY scheme announced by the government and an urgent
notification on the matter was made to introduce a para 68 L (3) of the EPF Scheme on 28th
March 2020. Under this provision non-refundable withdrawal to the extent of the basic
wages and dearness allowances for three months or up to 75% of the amount standing to
member's credit in the EPF account, whichever is less, is provided. The member can apply
for lesser amount also. This, being an advance, does not attract income tax deductions.
Anticipating the huge surge in the demand, EPFO came out with a completely new
software which has been developed from scratch and a receipt module for on-line receipt of
the claims was introduced within 24 hours and deployed on 29th March 2020. Further, the
application was required to be in paperless form to curtail any physical movement in view of
social distancing. It was decided to introduce a system of settling claims in auto mode
directly by the system in respect of all such members whose KYC requirements was
complete in all respects.

The COVID-19 pandemic has posed a serious threat and considering dire need of
money in these trying times, it has been decided to process advance to fight COVID-19
pandemic on top priority. It may be informed that since the introduction of this program,
EPFO across the country has processed about 1.37 lakh claims disbursing an
amount of Rs. 279.65 crores and the remittances of the moneys has already started taking
place. The system as it stands today is processing all applications which are fully KYC
compliant within less than 72 hours. Members, who have applied for claims in some other
category, can also file claim to fight pandemic and depending upon the KYC compliance
condition of each member, every effort is being made to settle claims at the earliest.
Claims for availing advance to fight pandemic are filed online, necessitating every
EPF account to be KYC complaint as pre-cursor. EPFO has relaxed date of birth correction
criteria to ease KYC compliance enabling submission of claim to fight pandemic online. EPFO
would accept the date of birth recorded in the Aadhaar card of a subscriber as a valid proof
for rectification of the date of birth in PF records. All cases with variation in date of birth up
to three years are now being accepted by EPFO.
EPFO is committed to serve its members during this difficult situation and EPFO
offices are functional to help them during these testing times.