Inoperative A/c norms should be strictly followed: EPFO
New Delhi: Retirement fund body EPFO has asked its field formations to strictly follow guidelines while settling claims out of inoperative accounts in order to reduce the risk of frauds.
Provident fund accounts, which fail to make contributions for 36 continuous months to the Employees' Provident Fund Organisation (EPFO), are classified as inoperative accounts.
"Instructions shall be followed scrupulously for settlement of claims out of inoperative accounts. All care shall be taken to reduce the risk of frauds and to ensure that claims are authentic and the payments are made to genuine claimants," an EPFO office order to field staff said.
As per the modalities for settlement of claims out of inoperative accounts, attestation of the claim by the employer is needed.
In cases where, the employer in not available to identify the claimant member, the attestation of claim by bank authorities is required along with Know-you-customer (KYC) document for applicants' identification and his/her proof of residence.
The KYC documents for the purpose include PAN card, voter identity card, passport, ration card, ESI identity card, driving licence and any other identity card issued by government including Aadhaar.
The procedure also provides that in cases where the settlement amount is beyond Rs 50,000, the claims are approved by Assistant Provident Fund Commissioner.
In cases where settlement amount is more than Rs 25,000 but less than Rs 50,000, the claims are approved by Account Officer. For the amount less than Rs 25,000, the claims can be approved by Dealing Assistant.
The EPFO had stopped crediting interest in the inoperative account from April 1, 2011. However, these accounts have definite claimants and the account holders can claim for withdrawal or transfer of provident fund.
According to information available, Rs 26,496.61 crore is lying in the inoperative PF accounts with EPFO as on March 31, 2014.