In a significant move to simplify administrative processes and provide faster financial relief to grieving families, the Employees' Provident Fund Organisation (EPFO) announced on August 13, 2025, that it will no longer require Guardianship Certificates for processing death claims when settlements are made directly to bank accounts of minor children.

 

Breaking Down Bureaucratic Barriers

The EPFO's latest circular addresses a long-standing issue that has caused unnecessary delays in claim processing. Previously, when a deceased EPFO member's settlement amount needed to be paid to surviving minor children, the organization mandated a Guardianship Certificate—a requirement that often led to prolonged court procedures and delayed financial support for families during their most vulnerable moments.

 

"It has come to the notice that many offices are seeking Guardianship Certificates in cases where the settlements in respect of a deceased member are to be paid to his/her surviving minor children," the EPFO stated in its official communication. This acknowledgment reflects the organization's commitment to identifying and eliminating procedural bottlenecks that burden its 70 million subscribers.

 

The New Simplified Process

Under the revised guidelines, EPFO field offices will no longer insist on separate Guardianship Certificates if settlements are being credited directly to bank accounts opened in the names of minor children. This streamlined approach is designed to ensure speedy settlement while maintaining proper financial safeguards.

 

The EPFO has provided clear guidance to claimants: "Accordingly, the claimants be suitably guided to open individual bank accounts in the name of the minor children for crediting the settlement proceeds as well as pension due to them."

 

This directive covers multiple types of benefits, including:

 

Practical Implications for Families

The policy change represents a fundamental shift in how EPFO approaches minor beneficiary settlements. By eliminating the Guardianship Certificate requirement, the organization has removed a significant administrative hurdle that previously required families to navigate court proceedings while dealing with the loss of a primary breadwinner.

 

Families are now advised to proactively open separate bank accounts for each minor child who may be entitled to EPFO benefits. This preparation ensures that in the unfortunate event of a claim, the settlement process can proceed without additional documentation delays.

 

Form 20 Remains Essential

While the Guardianship Certificate requirement has been eliminated, it's important to note that Form 20 continues to serve as the primary document for claiming benefits as a nominee or legal heir. This form remains a crucial component of the claim process and must still be properly completed and submitted.

 

Additional EPFO Reforms

The guardianship certificate elimination is part of EPFO's broader initiative to enhance ease of living for its subscribers. Simultaneously, the organization has also simplified Aadhaar correction processes through existing joint declaration facilities, allowing employers to rectify mismatches in name, gender, and date of birth between Universal Account Numbers (UAN) and Aadhaar records.

 

Understanding EPFO Death Benefits

The reform particularly impacts several key benefit categories:

 

Family Pension: Continues to be payable to eligible family members, including cases where the deceased was an ex-serviceman at the time of death.

 

Employees' Deposit Linked Insurance (EDLI) Scheme: Provides life insurance coverage with lump sum payments to beneficiaries or nominees. However, it's important to note that EDLI benefits are only payable in cases of death while in service—benefits are not available if death occurs after leaving service.

 

Impact on Claim Processing Timeline

This policy change is expected to significantly reduce claim processing times, which have traditionally been extended due to the time required to obtain court-issued Guardianship Certificates. By eliminating this requirement, EPFO aims to provide faster financial relief to families when they need it most.

 

The EPFO's decision reflects a broader trend toward digitization and simplification of government processes. By removing unnecessary bureaucratic requirements while maintaining appropriate safeguards through direct bank account transfers, the organization demonstrates its commitment to serving its subscribers more effectively.

 

For families with minor children who are potential EPFO beneficiaries, the recommendation is clear: establish individual bank accounts for each minor child now, ensuring that any future claims can be processed without delays. This proactive step can provide peace of mind and ensure that financial support reaches families as quickly as possible during difficult times.

 

The reform underscores EPFO's evolution from a traditional bureaucratic institution to a more responsive organization focused on subscriber convenience and timely service delivery. As the organization continues to serve 70 million subscribers, such simplifications represent meaningful progress in making essential financial services more accessible to Indian families.