EPF: What is Passbook Lite? Know the benefits for the subscribers

Kolkata: The EPFO, or Employees’ Provident Fund Organisation, has come a long way. From a bureaucratic, paper and approval-driven organisation to an online and digital avatar, the transformation has been quite spectacular. The organisation is preparing to launch a benefit that would enable subscribers to withdraw funds form his/her EPF account through an ATM -- quite an unthinkable benefit which would earlier take weeks to approve early withdrawal of am small amount money from an account. The latest feature to make life easier for an EPFO subscriber is the launch of Passbook Lite. Let's have a look at its benefits.

Union Minister for Labour and Employment, Mansukh Mandaviya, has said that the main EPFO services will be at one's fingertips via the Passbook Lite, which is expected to drive both transparency and efficiency. Only one login will offer access to passbook summary, contributions, withdrawals and balance. Employees have to login to the passbook portal of EPFO to check their EPF contributions and transactions that includes advances/withdrawals.

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Nowadays most young men and women change jobs frequently. According to the rules, every time a person changes job, the EPF account changes. Their EPF accounts are transferred to the new employer’s PF office online via Form 13. Once the transfer is done, a Transfer Certificate (annexure K) is created by the former PF office and sent to the new PF office. This is proof that the transfer of the EPF account has been completed. So far, the Annexure K was given to the EPF subscribers only if they ask for it. In the new format, EPFO members can download the Annexure K from the member portal and need not apply to anyone. This is an improvement in transparency.

Faster claim settlement and quick processing of withdrawal are continuous improvements in the current system. One of the highlights of the present system is reduction in the hierarchy. The powers that were earlier vested with higher officers for PF transfer, settlement and advances have now been delegated to lower levels ensuring a faster process. , and refunds require approvals from higher-level officers.

This will bring the following benefits to members - ability to track status of transfer applications online, ensuring full transparency and allowing members to easily verify their PF transfers, confirmation that PF balance and service period are correctly updated in the new account, Maintenance of a permanent digital record for future reference, especially important for EPS benefit calculations and promoting ease of living, transparency, and trust in EPFO processes. What only Regional Provident Fund Commissioner or Officer-in-Charge could do earlier have been delegated to Assistant PF Commissioners and subordinate levels. This tiered approach has expedited processes for the EPFO subscriber.

Significantly, PPF or Public Provident Fund is another long-term scheme where one can accumulate funds for post-retirement with safety and certainty like EPF. Early withdrawal of funds in EPF takes place easily.