EPFO Rules: If your old company is closed and you have not transferred the money to the new company’s account or if there is no transaction for 36 months then this account will be closed automatically after 3 years.
EPFO Rules: There are often many questions in people’s mind regarding Employees Provident Fund (EPF). Like when can they withdraw their money. What are the pros and cons of withdrawing money. How to transfer EPF account. But, do you know that your PF account can also be closed automatically. When this happens, it is also very difficult to withdraw PF money. Let us understand why this happens…
When does EPF account get closed?
If your old company is closed and you have not transferred the money to the new company’s account or there is no transaction for 36 months, then after 3 years this account will be closed automatically and will be linked to the inactive account of EPF. . It may take a lot of effort to withdraw money from the account. You can withdraw money through KYC with the help of bank. However, interest continues to accrue on your dormant account as well. At the same time, if the account remains inactive for 7 years, then the deposited money is put in the Senior Citizen Welfare Fund.
What is EPFO’s rule?
The EPFO had said in one of its circulars some time ago that it is necessary to take care to settle the claims related to inactive accounts. Care should be taken that the risk of fraud is minimized and the claim is paid to the right claimants.
What is an inactive account?
The Provident Fund accounts in which the contribution amount is not deposited for more than 36 months, are classified by the EPFO as dormant accounts. However, interest is also available on dormant accounts.
Who will get certified?
To settle the claim related to inactive PF account, it is necessary that the employer of the employee certifies that claim. However, if the employees whose company is closed and there is no one to certify the claim, then the bank will certify such claim on the basis of KYC documents.
Which documents will be required?
For KYC, PAN Card, Voter Identity Card, Passport, Ration Card, ESI Identity Card, Driving License are included. Apart from this, any other identity card issued by the government like Aadhaar can also be used for this. After this, the Assistant Provident Fund Commissioner or other officers will be able to approve the withdrawal or account transfer from the accounts according to the amount.
With whose approval will the money be received?
If the amount exceeds 50 thousand rupees, the money will be withdrawn or transferred after the approval of the Assistant Provident Fund Commissioner. Similarly, if the amount is more than 25 thousand rupees and less than 50 thousand rupees, the account officer will be able to approve the fund transfer or withdrawal. If the amount is less than 25 thousand rupees, then the dealing assistant will be able to approve it.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
