EPFO: For employed people, a part of their salary that is deducted every month is the biggest financial security for the future. But what if this hard-earned money of years of hard work is gathering dust in one of your old Provident Fund (PF) accounts? Thousands of crores of rupees are lying unclaimed across the country, with no one to ask for them. Often people change jobs, but forget to transfer their old funds. Now the Employees Provident Fund Organization (EPFO) has found a solution to this big problem. Through a new pilot project, now the money from your inactive or dormant accounts is going to reach your bank account directly without any lengthy claim process.
What is EPFO’s new auto-transfer plan?
At present, to withdraw or transfer PF money, employees have to fill many types of forms. But under this new initiative, the entire process is being automated. In the initial phase, about 8.1 lakh such accounts have been identified, in which a huge fund of Rs 5,200 crore is deposited. The main objective of the department is that the subscribers do not have to visit the offices and their pending money is transferred safely to their Aadhaar linked bank account.
Why does hard earned money go ‘unclaimed’?
Changing jobs is a common thing in the corporate world. Generally people move from one company to another for better salary and career growth. But in this hurry they forget to transfer their old PF account to the new place. Many times it also happens that while working in different institutions, multiple PF accounts of the same employee are opened. With the passage of time the details of old companies fade away from the mind. This is the reason why transactions in the accounts stop and they go into dormant or inactive category. The result is that your own money remains lying in an account for years, the benefits of which you do not get on time.
How will your funds be credited to your account without applying?
This new system of EPFO is based on a smart technology. As soon as the system identifies your old account, the funds will be transferred automatically. However, for this it is very important that some basic conditions are fulfilled. Your PF account must be linked to your Aadhar card. Also, your KYC information should be completely accurate and the bank account should be verified. Earlier this type of automatic facility was provided only for small balance up to Rs 1,000, but now EPFO is starting it for larger amounts also. From security point of view, verification will be done very strictly in this entire process so that the money reaches the right person only.
Money gets stuck due to small mistakes
Many times money gets stuck due to technical glitches or small mistakes. The biggest hurdle is the difference in name or date of birth in your EPFO records and Aadhaar. Apart from this, multiple UANs of the same person being active, bank account information not being updated or the exit date not being recorded correctly by the old company are the shortcomings that can hinder this auto-transfer.
Also read: Changed or left job? You will be able to withdraw up to 75% of money instantly in EPFO 3.0