The COVID-19 has badly hit the pockets of the middle class in India. Provident Fund (PF) can be a reliable source of savings for the working class as it provides good long term interests.
PF is a fund that involves contributions from both employers and employees equally and an employee can withdraw a portion of money from the account during emergency or in case of retirement or resignation.
Looking at the grim situation, the EPFO (Employee Provident Fund Organization) has given an option to withdraw a portion of money in the event of the COVID-19 crisis or unemployment.
Similarly, if the person moves jobs, this sum can be transferred from one business to another. An EPF account offers an annual return of 8.5%.
Meanwhile, you can avoid these mistakes while withdrawing money from your PF account:
UAN Seed Bank Account: The UAN (Universal Account Number) must be involved along with the bank account number. If the PF account is not seeded, then you will face difficulties in getting funds. Besides that, the IFSC number given in EPFO records should be accurate.
Incomplete KYC: If there is any incomplete KYC, then you may face rejection. The KYC information must be validated. If you log in to your member e-service account, you may determine if the KYC is complete and confirmed.
Incorrect Date of Birth (DoB): If the date of birth (DoB) registered in EPFO and the birth date registered in the employer’s record do not match, your request may be rejected.
UAN-Aadhaar link: It is mandatory to link UAN with Aadhaar. If your UAN and Aadhaar are not connected, your EPF withdrawal request may be denied.
Incorrect Bank Account Information: It is important to have correct bank account details. Make sure to fill the account information correctly.