The Employees’ Provident Fund Organisation (EPFO) issued a Standard Operating Procedure (SOP) on Freezing/De-freezing of MID/UAN/Establishments, effective December 22, 2023. The SOP establishes a structured approach to detect, prevent, and address fraudulent activities, ensuring that members’ funds remain protected while enabling a smooth verification process before allowing transactions.
1. Purpose & Need for Freezing Accounts
The SOP aims to:
- Prevent fraudulent withdrawals, impersonation, and unauthorized KYC updates.
- Temporarily freeze accounts (MID/UAN/Establishment) when suspicious activity is detected.
- Verify account authenticity before allowing transactions.
- Recover fraudulently withdrawn funds and ensure systemic improvements.
2. Scope & Categories for Freezing
EPFO classifies cases under three categories:
- Category A – Accounts identified by the Head Office based on fraud risk parameters.
- Category B – Accounts showing suspicious transactions, unauthorized KYC changes, or fraudulent claims.
- Category C – Accounts with unauthorized deposits or compliance issues.
Actions Taken Upon Freezing:
- Login restrictions for members/employers.
- Blocking of withdrawals, transfers, and claim settlements.
- Disabling new UAN creation and MID linking.
3. Freezing & Verification Process
- EPFO’s Fraud Risk Mitigation Committee (RFRMC) assesses and approves freezing.
- The IS Division (EPFO’s IT Wing) implements the freeze in the system.
- Notifications are sent to affected members/employers via SMS and email.
- Verification is initiated based on supporting documents and employer responses.
4. De-freezing & Recovery Actions
- Verification must be completed within 15-30 days.
- If fraud is confirmed, legal action is taken, and funds are recovered.
- If found genuine, the account is de-frozen, and transactions are reinstated.
5. Monitoring & Compliance
- Real-time dashboards track freezing/de-freezing cases.
- EPFiGMS Grievance Portal allows affected users to appeal.
- Head Office, Zonal, and Regional Offices ensure compliance with timelines.
Conclusion
EPFO’s SOP on Freezing/De-freezing of Accounts enhances fund security, prevents fraud, and ensures transparency. The process ensures that legitimate members regain access quickly, while fraudulent activities are identified, investigated, and penalized effectively.
