The question, “Is Aadhaar Card Mandatory for PF accounts”, has been lingering in the mind of many people of late. This is because, the unique identification number, Aadhaar, has gained widespread use in many social welfare and beneficiary schemes in many sectors. It is the largest identity project appreciated on a world-wide basis. The potential benefits of linking Aadhaar number of residents to the various schemes comes as a huge cost and time saving mechanism for the Government and also improves efficiency of the Government machinery.
This article gives you the answer to that question along with some insights about the same.
Is Aadhaar Card Mandatory for PF:
It was informed in the Parliament by Labour Minister Bandaru Dattatreya, that it is not mandatory for subscribers to provide their Aadhaar card details for any provident fund transaction.
Thus, the announcement has put to rest the prevailing confusions about the question – Is Aadhaar Card Mandatory for PF? Answer – No!
In 2014, the Retirement Fund body EPFO (Employees’ Provident Fund Organisation) had chosen to start functioning as a registrar of the UIDAI (Unique Identification Authority of India) to enable the subscribers with the Aadhaar enrolment process, in case they do not possess one.
Ever since the statement was announced, queries have been raised to know whether the EPFO has made it mandatory to submit Aadhaar Card details of employees for any PF transactions.
Under the multi-registrar model for enrolments adopted by the UIDAI, many non-government agencies that interact with residents during their normal course of operations are appointed as Registrar to enroll the residents. This, in turn, has helped the UIDAI to speed up enrolment process tremendously.
The EPFO finds that it is highly important to seed the portable Universal PF Account Numbers issued by it, with the Aadhaar number of subscribers owing to the advantages associated with it. Some of the facilities like settlement of PF withdrawal claims by online means, can be provided to all those members whose PF accounts are seeded with Aadhaar number. Since the biometric details of the subscribers are also linked in the process, it allows for smooth financial transactions which were once considered tedious.
As of 2014, the EPFO had targeted to achieve seeding of more than 4.2 crore portable Universal PF Account Numbers with the Aadhaar numbers.
Aadhaar Card advantage for Retired Employees:
As aadhaar numbers are being used for authenticating pensioners, they enjoy the convenience of not required to be physically present before the pension disbursing agency.
Recently, the Government has launched a digital life certificate scheme for retired employees and also a fund portability scheme. The facility gives the pensioner an option to produce his/her life certificate remotely, through the Jeevan Praman Portal.
Most importantly, Aadhaar number of pensioners helps the Government in identifying fake beneficiaries and to eliminate them from the scheme.
Approximately, 22.5 lakh persons have activated their universal PF account numbers (UANs) which will remain portable throughout the life of subscribers, as of 2014. Also, in a state-wise ranking Maharashtra tops the list with a maximum number of 4.27 lakh activated UANs, with Karnataka (3.22 lakh) and Tamil Nadu (2.72 lakh) being followed next in order.
The linking of Provident Fund account of an employee with their Aadhaar number can make many processes simpler and easier for them.
We hope this article was informative in answering your question ,“Is Aadhaar card mandatory for PF?” Please check this website for many such useful resources.