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It is a must to link your Universal Account Number (UAN) with Aadhaar to get various benefits of the provident fund management under the Employee Provident Fund Organisation (EPFO). The government seeks this linking for the proper working of provident fund management systems that can further benefit members by providing untainted social security services. Fortunately, the same process can be facilitated easily through the UMANG App, which stands for Unified Mobile Application for New-age Governance.
This article explains the step-by-step process of How to link uan with aadhaar through the UMANG App, incorporating the details related to Form 19 in EPFO and its importance.
Knowing UAN and Aadhaar
UAN: The Employees’ Provident Fund Scheme gives a unique 12-digit number to each employee. The number does not change even if the employee changes the number of jobs.
Aadhaar: This is a 12-digit individual identification number issued by the Unique Identification Authority of India (UIDAI) on behalf of the Government of India.
Linking UAN with Aadhaar ensures identification authenticity and reduces the risk of fraudulent claims. It also simplifies the claim process for Form 19 in EPFO, which is utilized for final settlement of PF account on retirement or resignation.
Steps to Link UAN with Aadhaar using the UMANG App
Step 1: Download and Install the UMANG App
– Download the UMANG App from the Google Play Store or Apple App Store.
– Install and open the application on your mobile.
Step 2: Registration on the UMANG App
– Open the app and register with it. Enter your mobile number, then get verified by an OTP.
Step 3: Go to EPFO Services
Following successful registration, log in onto the main dashboard of the UMANG App.
Click ‘Services’ and look out for ‘EPFO’.
Step 4: Click on ‘e-KYC Services’
In the EPFO menu, you will find different options. Click on ‘e-KYC Services’.
Under e-KYC Services, you will find an option named ‘Aadhaar Seeding’.
Step 5: Validate UAN and Aadhaar
Enter your UAN number and the registered mobile number.
– Verify through the OTP sent on your registered mobile number.
Step 6: Link UAN with Aadhaar
Fill up your 12-digit Aadhaar number.
The application will retrieve information from UIDAI, and an OTP request will be generated on your Aadhaar-registered mobile number to authenticate it.
After OTP verification, the UAN gets successfully linked to your Aadhaar account.
Significance of Linking UAN with Aadhaar
There are several benefits to linkages. These range from swift withdrawal and transfer of funds to reducing the turn-around time for claim settlements and improving compliance within the BFSI sector.
Form 19 under EPFO
Form 19: This form is utilized for the final settlement of the Provident Fund (PF) account. The process considerably gets simplified and speeds up when UAN is Aadhaar linked. It makes sure that less paper work and verification go into the settlement process.
Improved Authentication and Frauds Mitigation
A synchronized UAN and Aadhaar system eliminates differences to a larger extent, ensuring enhanced security and faster settlement of claims for the employee as well as the EPFO.
Computation and Advantages of Integration
Sample Computation – PF Settlement
Assume an employee has a basic monthly salary of ₹20,000, which he contributes 12% towards PF.
Employee’s Monthly PF Contribution = ₹20,000 x 12% = ₹2,400
Employer’s Monthly PF Contribution = ₹20,000 x 12% = ₹2,400
Total Monthly PF Contribution = ₹2,400 + ₹2,400 = ₹4,800
Assuming that the employee has worked for 5 years, his PF would have been accrued as follows:
Total PF in 5 Years = ₹4,800 x 60 months = ₹2,88,000
Note: This is a very simplistic calculation. The actual value would have had interest accrued on it.
Through UAN being Aadhaar-linked, this amount is withdrawn upon retirement or resignation by filling Form 19. All transactions are then smooth and secure.
Summary
Linking uan with aadhaar is simply a simple process and also indispensable for better benefits and to facilitate other EPFO activities like availing the form 19 of PF settlement also. It has basically downloaded UMANG App for registration and exploring the services at EPFO; after that, all Aadhaar seeding can be performed by OTP verification.
This seamless process eliminates delays and complexities associated with previous manual mechanisms, promising more efficient management of the Provident Fund for employees. However, it is essential for users to scrutinize other avenues and changes in the financial landscape, ensuring holistic decision-making before proceeding. The procedures and guidelines may be periodically updated, so always keep abreast of the latest regulations issued by EPFO and related authorities.
Disclaimer:
For information purposes, the steps above. The users should weigh the pros and cons and get financial consultants to better understand what implications are associated with the linking of UAN and Aadhaar, especially in the context of the Indian financial market.
