Inoperative EPF accounts may now accrue interests

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New Delhi, March 29: Millions of organised sector employees whose EPF accounts have been inactive may start receiving interest payments on their EPF savings.

This is in review of the 2012 mandate that inoperative accounts over 36 months will not gain any interests. 'Inoperative' technically means an account where the employee or an employer have not been making any contributions to the account.

EPF

The CBT (Central Board of Trustees), which is the highest decision-making body of the EPF organization , will meet to review in 2012 order. It comprises representatives from the government, industry and workers and is led by Bandaru Dattatreya.

The total number of inactive accounts come up to 40 million out of a total of 150 million EPF accounts.

The new EPF rules that were implemented last month barred employees from withdrawing the full amount until they turned 58. However, earlier one could withdraw the entire EPF balance after 2 months of leaving the job. The new rule, nevertheless, notified on February 10 mandates withdrawal of only one's own share of EPF deposits and the interest accrued on it.

OneIndia News

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