A vital component of financial planning is nomination, which can guarantee that your preferred beneficiaries will receive your assets and investments after your passing. It is accessible for a range of financial products, including bank accounts, mutual funds, provident funds, and other types of investment vehicles.
However, a change in your personal circumstances might affect the beneficiaries you choose, so it's important to regularly review your nominations.
The Employees' Provident Fund Organization is among the most important areas where nomination is essential. The EPFO, a statutory organization under the Ministry of Labour and Employment, is in charge of managing the provident fund, pension, and insurance program for workers in India's organized sector.
In accordance with the EPF program, the employee's basic income is contributed to the PF account on equal terms by the company and the employee. The accumulated funds in the PF account are then given to the employee or their nominee upon retirement or in the event of the employee's passing.
In order to make it simpler for members to designate their beneficiaries online, EPFO recently introduced the e-nomination facility. Only UAN holders who have had their Aadhaar verified are allowed to submit e-nominations, and the option is available with e-sign.
Aadhaar verification is a requirement, which entails cross-referencing the member's name, birthdate, and gender with their Aadhaar.
Once the profile area has been updated, a link to submit an e-nomination will become available.
Prior to submitting an e-nomination, there are a few important considerations that must be made. For instance, the member should add those family members if they wish to only nominate a small number of them.
Even if the member does not want to designate his or her husband or children under PF, they should be added if the person is married and has a family. For the Pension Fund, spouses and children are considered to be family, so their names should be included on the family list. Before beginning the filing process, the family member's Aadhaar number and photo should be ready.
Family members should be added first, then a photo should be uploaded, and then each family member's Aadhaar should be entered. Once the verification is successful, the family will be added. It is optional to disclose account information.
The member must electronically sign the Document using Aadhaar-linked mobile OTP authentication once everything is finalised. It should be noted that in the event of the member's passing, e-nominations that are just filed and not e-signed will not be taken into consideration for action. The e-nomination is finished once the PDF has been electronically signed.
The member must select the checkbox, enter their Aadhaar number or Virtual ID for Aadhaar-Based e Authentication, and then click the E-sign link to complete the process. An OTP will then be delivered to the member's mobile number associated with their Aadhaar.
After providing the OTP and pressing the submit button, the nomination information will be saved in the EPFO database. The member can generate a 16-digit Virtual ID on the UIDAI website in the event that they desire to e-sign documents using the Virtual ID.
