KYC

Step-by-Step Guide For Employees To Generate And Activate UAN

The process for employees to generate and activate their UAN using Aadhaar Face Authentication is straightforward. Follow these simple steps:

1. Download the UMANG App: Start by downloading the UMANG App from the Play Store and installing it on your phone.
2. Install AadhaarFaceRD App: Install the AadhaarFaceRD App, which is required for face authentication during the UAN generation process.
3. Open the UMANG App: Launch the UMANG App and navigate to the “UAN Allotment and Activation” section under UAN services, choosing Face Auth.
4. Enter Aadhaar and Mobile Details: Provide your Aadhaar number and the mobile number linked to your Aadhaar account. An OTP will be sent to this mobile number for validation.
5. Complete Face Authentication: After verifying the OTP, the app will prompt you to take a live photo. Ensure the image is captured correctly—the green outline will indicate that the photo has been successfully taken.
6. Receive UAN and Download e-UAN Card: Once the face authentication is successful, your UAN will be generated and sent to your mobile via SMS. You can then download your e-UAN card PDF from the UMANG App or the EPFO Member Portal. Your UAN will be auto-activated on the Member Portal, eliminating the need for additional steps.

Enhanced Security Through Biometric Authentication

One of the standout features of the new UAN generation and activation process is the incorporation of biometric authentication. Unlike traditional methods that rely on demographic information or OTP-based verification, Aadhaar Face Authentication ensures a higher level of security, making it nearly impossible for fraud or mistakes to slip through the cracks.

Biometric authentication, specifically through face recognition, offers a foolproof way of verifying an individual’s identity right from the point of entry into the EPFO system. This level of accuracy not only strengthens security but also provides an added layer of convenience for both employees and employers.

Why Face Authentication Is More Secure Than Traditional Methods

Traditional methods of verifying identity, such as demographic verification or OTP-based authentication, are prone to errors. For example, users might mistype their name or birthdate, or face delays in receiving OTPs, leading to frustration and unnecessary steps in the process.

With Face Authentication, the system directly matches the employee’s live photo against the Aadhaar database, ensuring that the right person is linked to the correct UAN. This method is much more secure because it uses unique biometric identifiers that cannot be replicated, ensuring that only the rightful individual can generate and activate their UAN. Additionally, the use of Aadhaar-linked mobile numbers adds another layer of verification, ensuring the data is consistent and tamper-proof.

Encouraging Employers To Adopt The New UAN Generation Process

While the new Aadhaar Face Authentication-based UAN generation system is designed to be employee-centric, employers also play a crucial role in ensuring its successful adoption. For many employees, particularly first-time jobholders, the process of generating and activating their UAN may seem unfamiliar or daunting. Here, employers can make a significant difference by encouraging and guiding their employees to use the new system.

Employers should consider promoting this direct method of UAN generation, helping employees understand the steps and benefits. By guiding employees through the process, employers can ensure that UANs are generated accurately and on time, eliminating the need for follow-up corrections. This proactive approach can significantly reduce the administrative burden on employers and speed up the onboarding process for new employees.

Additionally, employers should make it a point to educate their workforce about the advantages of self-service features that are now available through the EPFO Member Portal and the UMANG App. This can help employees take full advantage of EPFO services like passbook viewing, KYC updates, and claim submissions, streamlining their experience with EPFO.

EPFO’s Collaboration With My Bharat For Digital Life Certificates

In addition to the UAN generation process, EPFO is also expanding its digital services for pensioners. Through a collaboration with My Bharat, EPFO plans to promote the digital life certificate system known as Jeevan Pramaan, which will also leverage Face Authentication Technology.

This initiative aims to make life certificates available at the doorstep of pensioners, enabling them to authenticate their identity using biometric data, without the need for visiting EPFO offices. By extending the reach of digital services in this way, EPFO is ensuring that even pensioners who may face difficulties accessing physical offices can still benefit from timely and secure services.

The integration of Aadhaar Face Authentication into these services will provide an additional layer of security, ensuring that pensioners’ identities are verified accurately and promptly. This collaboration underscores EPFO’s commitment to improving accessibility and security for all members, regardless of their location or technical proficiency.

EPFO Simplifies Cash Withdrawals

Removal Of Cheque Leaf And Bank Passbook Upload Requirements

In this initiative aimed at reducing administrative bottlenecks, EPFO has also decided to completely remove the requirement for uploading images of cheque leaves or attested bank passbooks when filing online claims. For many EPF members, this step has been a source of delays and frustration due to the potential for poor-quality uploads, errors in document formatting, or even simple misunderstandings about what was required.

Historically, EPFO required these documents to verify the bank account details of members when they submitted claims. However, following the successful pilot of relaxing this requirement for KYC-updated members in May 2024, the policy has now been extended to all EPF members. This change is crucial as it eliminates one of the major reasons for claim rejections — poor-quality or unreadable uploads — thereby speeding up the process and reducing the volume of grievances related to documentation errors.

The UAN system, which links an employee’s bank account with their EPF account, already verifies the bank account holder’s name and account number at the time of account seeding. As a result, the need for additional documentation such as cheque leaf images or passbook attestation is now redundant.

By removing this additional step, EPFO aims to benefit an estimated 6 crore members, enabling faster, hassle-free claim settlements. With the elimination of this requirement, EPFO members will no longer face unnecessary delays in accessing their funds. This is particularly crucial for employees looking to withdraw or transfer their EPF balances in times of need, making the entire claims process more efficient and user-friendly.

Removal Of Employer Approval For Bank Account Seeding

EPFO has also introduced a key simplification to the process of seeding bank account details with the Universal Account Number (UAN), eliminating the need for employer approval after bank verification. This reform addresses one of the most time-consuming steps in the process of ensuring that an employee’s PF withdrawals are credited to their bank account.

Previously, after an employee submitted a request to seed their bank account with UAN, the employer was required to approve the verification, which added a layer of delay. On average, the bank verification took around 3 days, but the employer approval could take as long as 13 days, resulting in significant delays for members who were waiting for their PF balances to be credited to their accounts. This slow approval process created unnecessary backlogs and frustration for employees, especially for those who needed quick access to their funds.

To streamline this process, EPFO has now removed the employer approval step, making the seeding process faster and more efficient. This change will immediately benefit the 14.95 lakh members whose bank account verification requests were previously pending due to delays in employer approvals. With this reform, these members will now experience a much quicker resolution of their seeding requests.

In addition, the new system enables employees to update or change their bank account details linked to their UAN without needing employer intervention. The update process will be facilitated through Aadhaar OTP authentication, ensuring that the employee’s identity is securely verified. This makes the entire process more flexible, reducing dependency on employers and providing more control to the members over their account details.

EPFO Expands Partnerships With Banks

In another key development, EPFO has expanded its network of empanelled banks to 32, including 15 new public and private sector banks. This move enhances transaction efficiency, ensuring quicker and more seamless processing of EPF contributions and claims.

Previously, employers were limited to a smaller pool of banks when remitting EPF contributions. With the inclusion of these 15 additional banks, EPFO is now providing employers with a wider range of options to choose from, improving flexibility and reducing administrative friction. The total annual collections managed through these banks amount to nearly Rs. 12,000 crore, allowing for smoother and more direct contributions to EPF accounts.

Employees will no longer face delays in the bank account verification process when they seed their accounts with UAN, as these newly empanelled banks will now directly verify the bank details of employees. This ensures that members can access their EPF balances more quickly, without relying on third-party aggregators, which previously added delays to the process.

This reform will also reduce the time taken for EPF dues to be processed, allowing for quicker investment and increasing the potential returns on members’ savings. Previously, dues remitted through non-empanelled banks often took T+2 days for processing, whereas transactions with empanelled banks are now processed on a T+1 day basis. This improvement not only speeds up the process but also benefits EPFO by lowering operational costs related to name validation and reducing dependency on intermediary channels.

For employers, the expanded network provides greater convenience when dealing with EPF payments. The ability to interact directly with a broader set of banks to resolve payment issues or grievances will lead to a more efficient and transparent process.