The nomination process plays a very crucial role in the finance world allowing individuals of different financial product holders to assign their preferred nominee who will receive the benefits in case of their untimely demise. These financial products involve life insurance policies, bank account money, mutual funds, EPF, and other investment options. So, a person should always update his or her nominee section and keep it checked periodically.
Why EPFO Nomination Process is Necessary?
Nomination holds significant importance within the Employees’ Provident Fund Organization or EPFO as it plays a crucial role in guaranteeing the rightful allocation of accumulated funds in an employee’s Provident Fund (PF) account to the designated nominee(s) in the unfortunate event of the employee’s demise.
EPFO is an authorized entity operating under the Ministry of Labour and Employment, Government of India. Its primary responsibility entails overseeing the management of provident funds, pension, and insurance schemes for employees within the organized sector of India.
In the EPF scheme, both the employee and the employer make contributions based on a specific percentage of the employee’s basic pay, which are then deposited into the PF account. These funds accumulate over time and are disbursed to the employee upon retirement or to their designated nominee(s) in the unfortunate event of the employee’s demise.
EPFO E-Nomination Process
- Log in to the EPFO Member’s portal using your credentials.
- Navigate to the section for adding family members.
- For each family member, upload a photograph and provide their Aadhaar details.
- The Aadhaar data will be verified against the entered name, date of birth, and gender of each family member. Only upon successful verification will they be added as valid beneficiaries.
- It is not mandatory to provide bank account details.
- Once you have added all the necessary family members, a PDF will be generated.
- To complete the process, the PDF must be electronically signed (e-signed) by the member using Aadhaar-linked mobile OTP authentication.
- It is important to note that e-nominations that are filed but not e-signed will not be considered for action in the unfortunate event of the member’s demise.
- The e-nomination process is considered complete only when the PDF is successfully e-signed.
- By having a valid nomination in place, family members can log in to the portal using OTP sent to their Aadhaar-linked mobile number and file online claims after the member’s demise.