There are different rules from EPF withdrawal to EPF transfer. Understanding these rules is very important for PF account holders.
New Delhi. Employees’ Provident Fund Organization (EPFO) provides PF facility to all employees. There are different rules from EPF withdrawal to EPF transfer. Understanding these rules is very important for PF account holders. Some people lose their PF money due to lack of information. We are giving you information about one such rule. According to which, your PF account can also be closed on its own.
Let us tell you what is this rule of EPF account …
When does EPF account get closed-
If your old company is closed and you have not transferred your money to the new company’s account or if there is no transaction in the account for 36 months, then your account will be closed automatically as per the rules. EPFO puts such accounts in the inactive category. There is also a problem in withdrawing money from the account when it is inactive. For this, to keep the account active, one has to contact EPFO. However, even when it is inactive, interest continues to accrue on the money lying in the account.
Which account is called inactive?
Dormant accounts are such provident fund accounts in which no transaction has taken place for more than 36 months. Means the Provident Fund’s part (contribution) has not been deposited on behalf of you or your company. EPFO has created a dormant category for such accounts. Earlier, interest was not available on these accounts. But, in 2016 the rules were amended and now interest is given on these accounts.
Is this the rule?
EPFO had issued some points regarding this rule in one of its circulars. According to the EPFO, it is necessary to take care to settle the claims related to inactive accounts. Due care should be taken that the risk of fraud is minimized and the claim is paid to the right claimants.
In order to settle the claim related to inactive PF accounts, it is necessary that the employer of the employee has to certify that claim. However, employees whose company is closed and there is no one to certify the claim, then such claim can be certified on the basis of bank KYC documents.
Which documents are necessary?
KYC documents include PAN Card, Voter Identity Card, Passport, Ration Card, ESI Identity Card, Driving License. Apart from this, any other identity card issued by the government like Aadhaar can also be used. After this, the Assistant Provident Fund can take the approval of withdrawal or transfer from the fund commissioner or other officer (according to the amount).
