Transfer of unclaimed funds to Senior Citizens Welfare Fund for seven years in EPF and PPF accounts and other small savings schemes
EPFO: The Employees’ Provident Fund Organization (EPFO) has proposed to transfer Rs 100 crore to the Senior Citizens’ Welfare Fund in unclaimed funds worth over Rs 58,000 crore. The EPFO does this under the 2015 guidelines of the government.
According to a report in Economic Times, this proposal will be considered in the meeting of the Central Board of Trustees of EPFO to be held on Saturday.
Unclaimed funds are transferred after seven years
According to the Finance Ministry notification issued in 2015, unclaimed funds in EPF and PPF accounts and other small savings schemes for seven years are transferred to Senior Citizens Welfare Fund. But this fund remains with EPFO.
The proposal to transfer unclaimed funds to Senior Citizens Fund is expected to be opposed by trade unions. A representative of a national trade union said, “We will consider the government’s proposal to transfer the unclaimed funds. We think it is not unclaimed money but it is money which has not been settled. So it should remain with the EPFO.”
Will the interest rate increase or decrease?
Interest rate: Along with this, the interest rate will also be considered in the CBT meeting to be held in Guwahati on 11-12 March. According to sources, the interest rate can be retained at the level of 2020-21 or can be reduced to 8.35-8.45 per cent depending on the volatility in the stock market.
Another media report has expressed the possibility of a hike in interest rates. According to this, an increase in the current interest rate of 8.5 percent on the amount deposited in EPF in CBT may be stamped. This is the lowest interest available on PF. Earlier, PF interest rate was 8.65 percent in 2018-19, 8.65 percent in 2016-17 and 8.55 percent in 2017-18.
What is Senior Citizens Welfare Fund
SCWF: Unclaimed money from PPF, Post Office Savings Accounts, EPF, RD and other similar accounts is deposited in the SCW Fund. This fund was established in 2015. This fund is used for banking and awareness programs related to senior citizens. Usually, before transferring money to this fund, organizations running PPF, EPF, RD contact customers and ask them to take money. If the money is not taken then it is transferred to this fund. This happens when the depositor has not made contact, his home address has changed and he has died without a nominee.
The depositor can withdraw his money within 25 years of the transfer of money in the fund. If the money is not taken for 25 years then the amount deposited in the fund is handed over to the Government of India.
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