In what seems to be a crucial move in the direction of digitization and financial transparency, the EPFO has decided to roll out a novel Aadhaar-based online platform that will assist in millions of subscribers activating their inactive provident fund (PF) accounts. Known as E-PRAAPTI (EPF Aadhaar Based Access Portal for Tracking Inoperative Accounts), the move comes as a solution to the problem of unclaimed retirement savings.
A Solution in the Form of an Online Portal
The country’s working population has seen tremendous change in terms of rising job mobility over the last two decades. While the trend has brought about positive growth in economic terms, it has also resulted in the generation of several PF accounts for each worker, many of which ultimately turn inactive or ‘inoperative. ‘ Failure to keep adequate documentation, lack of employment information, or missing the UAN linkage process causes several such accounts to go inactive.
It is estimated that there are lakhs of such inactive accounts with thousands of crores lying idle. This also means inefficiency within the entire system.
With the new platform, it is possible to get all this sorted out easily.
How the Portal Will Work
The E-PRAAPTI portal will serve as an all-in-one digital portal through which the user will be able to recognize, follow up on, and activate his existing or dormant PF account. Using the Aadhaar-based authentication process, users will be able to safely sign in and access PF accounts that have not been linked to their UAN yet.
Upon accessing the accounts, the subscriber will be able to update his profile, link his accounts to his UAN, and begin the activation process immediately. This will be helpful to those who joined their employers before the introduction of the UAN scheme in 2014, as there are many dormant accounts available from that time.
The portal is likely to be launched in two stages. In the initial stage, users will be able to access the portal using their member ID numbers; and in the next stage, users will have more advanced search options even without remembering their login information.
Why Aadhaar-Based Authentication is Important
Given that Aadhaar plays a significant role in digital identification within India, incorporating it in the EPFO service delivery process makes sense.
This decision is also in line with the overall push towards digital governance and DBT schemes by the government. The Aadhaar linking will help avoid any fraud or duplicity and bring transparency, which is key when dealing with large-scale social security programs.
Additionally, Aadhaar linking will lead to fewer manual interventions, thereby eliminating the delays in processing PF claims that have been seen in the past.
Improving Efficiency and Transparency
The launching of the new E-PRAAPTI is a step in the direction of overall digitalization. In recent years, the EPFO has made many reforms and changes, such as automatic settlement of claims, online KYC changes, and mobile-based solutions.
With the new system, it can be anticipated that there will be fewer manual interventions and faster transactions. Users will get an opportunity to track their accounts better, ensuring efficiency.
More importantly, this decision is likely to improve trust among the public regarding the EPFO scheme.
Implications for the Subscribers
In India, there are many people working in companies and organizations in various capacities. Millions of subscribers will experience a paradigm shift in dealing with the issue through E-PRAAPTI.
The E-PRAAPTI online platform can help such people manage their funds and prevent any kind of hassle while claiming them during their retirement age. The platform will also help them deal with the issue in case they move to other companies within the same sector or another sector.
Moreover, families of dead subscribers have always faced difficulties when it comes to withdrawing money from the respective accounts. This platform can make it easy for them.
Solution to the Issue of Dormant Accounts
There could be many reasons why an EPF account remains dormant. However, an account is usually considered to be inoperative after three years of its non-activity.
Such accounts continue to yield some form of earnings depending on some factors. But there was always an urgent need to revive those dormant accounts in order to benefit the subscriber and the country’s economy.
It is worth mentioning that this platform serves as a continuation of similar initiatives, like automatic settlement of accounts having a lesser balance amount.
Taking the First Step to EPFO 3.0
E-PRAAPTI can be considered the initial step towards EPFO 3.0, which is an advanced ecosystem in the fully digitalized world.
With the integration of Aadhaar authentication and linking of UAN along with access to real-time data, EPFO will be able to provide an improved and convenient service for users. This is especially relevant considering how much expectations have grown in today’s digitalized age.
What the Future Holds
The news about the portal has been received positively, and now it is up to EPFO to effectively implement it and create awareness among users. With the right approach, E-PRAAPTI may help EPFO to minimize the amount of unclaimed PF funds in the country.
Conclusion
With the development of the Aadhaar-based e-PRAAPTI portal, it can be said that India has made another great stride towards becoming financially included. The use of technology here will help to solve a problem in a manner that also empowers individuals, who will be able to reclaim their financial rights.
Every penny counts in India, and hence there could be several far-reaching benefits from activating these inactive PF accounts.
