EPFO’s new rules: The Employees' Provident Fund Organisation (EPFO) is tightening its verification processes for PF accounts that have been inactive or transaction-less for over three years. To protect these accounts from unauthorised access and ensure accurate fund distribution, the EPFO will now implement stringent measures, including biometric authentication and regular KYC updates.
In line with this, the EPFO has introduced new regulations for the transfer and withdrawal of funds from these accounts. According to a circular released recently, the updated guidelines are aimed at enhancing security and mitigating risks associated with fraud, impersonation, and forgery.
Inoperative and transaction-less accounts
According to the amended definition of an inoperative account, an account becomes inoperative when the account holder reaches the age of 58 years, which is 36 months after the retirement age of 55 years. Under paragraph 60(6) of the EPF Scheme, 1952, interest will no longer be credited to the account from the date it is classified as inoperative according to paragraph 72(6) of the same scheme. However, with the updated definition, an account will continue to earn interest until the member reaches the age of 58. Transaction-less accounts, on the other hand, are defined as those without transactions other than the periodic crediting of interest over the past three years. These accounts, deemed inactive, will now undergo additional scrutiny to ensure accurate processing and settlement of claims.“The transactionless accounts would require an additional layer for higher due diligence. Further, the existing claim settlement and verification procedures for these accounts necessitate revision to institutionalise greater scrutiny in the processing and settlement of such accounts. This entails a comprehensive reassessment of the existing practices to incorporate updated protocols, embracing digital technologies for enhanced efficiency within the evolving landscape of the EPFO,” the circular stated. The EPFO's updated procedures will involve a comprehensive review of existing practices, integrating advanced technologies to enhance the efficiency and security of account management.
-
Rare Red Sand Boa smuggling uncovered in Bidar; three arrested
-
'How long will govt fool people?': Rohit Pawar on Ajit Pawar crash probe
-
Innovation City and ENTA launch UAE's first home purchase with trade license
-
Look: 14 moments when Sheikh Mohamed bin Zayed won people's hearts
-
UK weather maps show 27C heat surge in days as 20 counties hit - full list
