Employed people’s lifetime earnings are provided by the Provident Fund. You contribute to the EPF as long as you are employed, and when you retire, you will have a sizable sum to spend in your retirement.
EPF Account: The money in the Provident Fund represents a person’s lifetime earnings for salaried persons. It is critical that you understand the EPFO laws in this case. You contribute to the EPF as long as you are employed, and when you retire, you will have a sizable sum to spend in your retirement. However, it is very uncommon for a PF account to be closed owing to a lack of information or errors. As a result, it is critical for you to understand that you should avoid making such a mistake.
1. The account could be closed.
If you have not transferred your PF account from the previous firm to the new employer, and the previous company has closed. If there has been no transaction from your PF account for 36 months, that is, no money has been placed into it, you may be eligible for a refund. As a result, your PF account will be closed in this scenario. EPFO classifies such accounts as “inoperative.”
2. When will it be operational again?
You will not be able to conduct transactions once the account has been ‘inoperative.’ To reactivate the account, you must apply to EPFO. Even though the account is ‘inactive,’ interest continues to accrue on the money in it, so your money isn’t lost; it’s returned to you. There was a time when these accounts did not pay interest. The rules were changed in 2016, and interest was introduced. You should be aware that until you reach the age of 58, interest is accrued on your PF account.
3. When does an account become “inactive”?
According to the new rules, an employee’s EPF account becomes ‘inoperative’ if he or she has not applied for a withdrawal of EPF balance when:
A- even after 36 months of retirement when the member turns 55 years old
B- when the member is permanently settled abroad
C- if the member has removed all retirement funds
D- if the member has died.
E- This fund Senior Citizens’ Welfare is put into the Fund if the PF does not claim to account for 7 years.
What are the requirements for EPFO?
In one of its circulars, the EPFO stated that it is vital to exercise caution when settling claims relating to dormant accounts. It is critical to ensure that the risk of fraud is reduced and that the claim is paid to the correct claimants.
Who will certify PF accounts that have been inactive for a long time?
It is important for the employee’s employer to certify the claim relating to inactive PF accounts in order to satisfy the claim. If, on the other hand, the employees’ company has closed and no one is available to certify the claim, the bank will certify the claim using KYC papers.
Which documents are expected to be required?
PAN Card, Voter ID Card, Passport, Ration Card, ESI ID Card, Identity Card, and Driving License are examples of KYC papers. Apart from that, any other government-issued identification card, such as Aadhaar, can be utilised. Following that, the Assistant Provident Fund Commissioner or other officers will be authorised to approve the withdrawal or account transfer based on the amount.
Whose approval is required for the money to be received?
If the amount exceeds 50 thousand rupees, the money will be withdrawn or transferred only when the Assistant Provident Fund Commissioner has given his consent. The account officer will be able to approve the fund transfer or withdrawal if the amount is greater than 25 thousand rupees but less than 50 thousand rupees. The dealing assistant will be able to approve it if the amount is less than 25 thousand rupees.
