NEW DELHI — The
Employees’ Provident Fund Organisation (EPFO) on Wednesday said its members can
now generate a Universal Account Number (UAN) and activate it using Aadhaar
Face Authentication Technology (FAT) through the UMANG mobile app.
The contactless and secure service marks a major leap in
providing hassle-free and fully digital experiences to crores of EPFO members.
Earlier, UANs were largely generated by employers using
employee data submitted to the EPFO.
While Aadhaar details were validated, inaccuracies in fields
such as father’s name, mobile number, or date of birth were common, according
to the Ministry of Labour and Employment.
These errors often required corrections during claim
processing or while accessing other EPFO services.
In the financial year 2024-25 alone, out of 1.26 crore UANs
allotted, only 44.68 lakh (35.30 per cent) were activated by members.
"Several reminders were given to employers to get
employees to activate their UAN using Aadhaar OTP so that in future any benefit
under the Employment Linked Scheme could be potentially provided using direct
benefit transfer (DBT)," according to the EPFO.
In many cases, the UAN was not even communicated to the
employee, and mobile numbers were missing or incorrect, making direct
communication difficult. Furthermore, UAN activation through Aadhaar OTP
validation on the EPFO Member portal was a separate process to be completed by
the member, causing confusion.
To address these challenges, the EPFO has now enabled direct
UAN generation and activation using Face Authentication via the UMANG App.
This service can be used by both employees and employers. It
offers 100 per cent validation of Aadhaar and user using Face Authentication
and data of user is pre-populated directly from Aadhaar database.
According to the EPFO, the mobile number of the user is
matched with the mobile registered with Aadhaar, and UAN activation on EPFO
portal simultaneously completed during generation process.
At the time of employment, an employee can hand copy of the
e-UAN card PDF and UAN to the employer for onboarding with the EPFO. Access to
EPFO services such as passbook viewing, KYC updates, claim submission, and more
is immediately unlocked.
Last week, the government announced two key reforms in the
EPFO claim settlement process. The EPFO dispensed with the requirement of
uploading an image of a cheque leaf or attested bank passbook while filing
online claims, which would benefit over 7.7 crore members.
The EPFO also removed the requirement of employer approval
after bank verification.