Source | LiveMint
New Delhi: The Employees’ Provident Fund Organisation (EPFO) will mandatorily seed all 81 million provident fund (PF) accounts with Aadhaar by 31 December to make its online transactions smoother and help track an employee if he/she switches jobs.
The move comes after Prime Minister Narendra Modi reviewed the functioning of EPFO sometime ago and asked it to become more user-friendly and make its online interface more robust.
Though a Herculean task, the labour ministry has directed the EPFO to finish Aadhaar seeding on all EPF accounts in a time-bound manner.
EPFO, which functions under the labour ministry, has written to all it’s over 120 regional offices to make sure that the Aadhaar seeding happens on time.
Mint has seen a copy of the internal circular issued by the EPFO headquarters to its regional offices.
“It is noted that under the implemented universal account number (UAN) programme, the seeding of Aadhaar number in the UAN database of EPF members is very low. It needs to be emphasized that to identify the member across different employments, the UAN database of members has to be seeded with KYC (know your customer) details,” the circular said.
“At PRAGATI meeting …it was pointed that seeding of Aadhaar number in the UAN database of EPF members is very low …subsequently the ministry of labour and employment has set the timeline to ensure 100% Aadhaar seeding in beneficiary database by 31/12/2016,” the circular added.
Pragati meeting is a brainchild of PM Modi to directly oversee the progress of different departments and interact with top bureaucrats to get an update on specific project implementation. UAN is a permanent number issued by EPFO to all EPF subscribers that help PF number portability. Like a bank account it makes EPF accounts permanent and employees are free to retain the account number throughout their work life.
As of 26 November, EPFO has issued 81.13 million UANs to organized sector employees via their employers but only 19.67 million Aadhaar numbers were uploaded by employers. Of the total Aadhaar uploaded only 16 million are KYC compliant, meaning the employers have verified these Aadhaar numbers of their employees who are contributing to EPF every month.