UAN Number and its Significance in Provident Fund Withdrawal

In the era of digitization, India has revamped several of its systems for hassle-free accessibility and transparency. One such area that has witnessed a significant transformation is the Indian Employee Provident Fund (EPF) system with the introduction of the Universal Account Number (UAN).

So, what is UAN number? UAN stands for Universal Account Number. This number, unique to each employee, is mandatory for all individuals who contribute to the EPF. Introduced by the Employee Provident Fund Organisation (EPFO), UAN is a 12-digit number that remains constant throughout an individual's working life, irrespective of job changes.

The main objective behind the creation of the UAN is to link multiple Member Identification Numbers (Member Id) assigned to a single member under a single UAN. This facilitates EPFO to simply retrace the Employee Provident Fund (EPF) contribution of the member.

Prior to the launch of the UAN, transitioning the EPF balance from one employer to another was a troublesome task. The introduction of UAN has streamlined this process, enabling employees to transfer their EPF balance with utmost ease and less paperwork. All they need to do now is to provide their UAN number to their new employer, who will then link the new member ID to the UAN.

A UAN number offers several advantages:

- It’s handy for EPF balance checks

- It aids the process of withdrawing the PF.

- It helps in the consolidation of multiple EPF accounts

- It makes transfers and withdrawals of EPF easy and less time-consuming.

Now that we know what a UAN number is and its benefits, let's delve into the procedure to withdraw PF.

To withdraw your PF online, you need to make sure:

- Your UAN is activated and the mobile number used for activating the UAN is in working state

- UAN is linked with your KYC, i.e., Aadhaar, PAN, and bank details along with the IFSC code.

After making sure of these prerequisites, you can follow these steps:

- Visit the EPFO e-sewa portal

- Log in with your UAN and password

- Go to the 'Online Services' tab and click on 'Claim (Form-31,19,10C & 10D).'

- Enter your details - Bank Account, Aadhaar, Date of Birth, and verify them

- Click on 'Yes' to sign the certificate of undertaking and then proceed

- Now click on 'Proceed for Online Claim'

- Select the PF settlement, pension withdrawal, or PF part withdrawal, whichever suits your situation

- Fill in the details and reason for withdrawal, and submit your application.

Once approved, the PF amount will directly get transferred to the account linked with your UAN.

In conclusion, the UAN indeed plays a crucial role in simplifying and speeding up PF related transactions, particularly in the withdrawal process.

Disclaimer: 

The decision to trade in the Indian financial market needs to be taken after careful research and consideration. The volatility inherent to the market can result in both profits and losses. Therefore, all investors are suggested to carefully gauge the pros and cons of trading in the Indian financial market.

Summary:

Understanding the UAN number is of utmost importance for all individuals contributing to the Employee Provident Fund (EPF) in India. This 12-digit number serves as an umbrella linking all Member Identification Numbers (Member Id) assigned to a single member. The UAN simplifies the process of checking the EPF balance, consolidating multiple EPF accounts, and facilitating easy transfer and withdrawal of funds. The procedure for withdrawing PF requires the employees to ensure their UAN is activated, linked with their KYC, and then they can apply for withdrawal online via the EPFO e-sewa portal. However, all financial decisions must be made after comprehensive research, considering the volatility of the Indian financial market.