The
Times of India: Nagpur: Thursday, November 08, 2012.
The Nagpur
office of the Employees Provident Fund Organisation (EPFO) has unclaimed
deposits to the tune of Rs 145 crore, revealed a RTI query by Abhay Kolarkar
from the city. This is close to half of the total balance in the accounts which
is to the tune of Rs 308 crore as on March 2012, according to EPFO's reply to
the RTI question.
Any account
which is not settled after the remittances are stopped is considered to have
unclaimed deposits. A PF account is supposed to be closed and funds withdrawn
or shifted to a new account if it stops receiving remittances. Stopping of
remittance indicates that the employee has retired or left the organization. In
such a case the person is supposed to claim the amount from the EPFO, if this
is not done the account is considered to be dormant. From 2011 no interest will
be added to such accounts which remain dormant for three years in a row, said a
senior official in EPFO.
However,
there are certain accounts which do not receive remittances not due to the
employee leaving, but on account of a default by the employer. The funds are in
such accounts are classified as unclaimed deposits too after three years, the
source said.
There have
been demands often that the amount which is much larger with the EPFO on the
whole, should be utilized in giving enhanced returns to the active members.
EPFO presently provides 8.25% of yearly interest. However, the EPFO is against
that idea. Such accounts will continue to get interest till the three year
period ends.
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