Inoperative EPF accounts will now earn interests from 1st April
Posted on: 30/Mar/2016 10:29:45 AM
Government of India has mentioned that all EPF accounts, including more than nine crore inoperative accounts at present, will now get interest from April 1, 2016. The decision was taken in the EPFO`s Central Board of Trustees (CBT) meeting.
Accounts will become inoperative only in cases where employees settle abroad permanently and fail to withdraw their account balance within 36 months. Similarly, in the case of an EPF member`s death, the interest on their savings will be credited for a period of three years after his or her death. At present, 9.23 crore out of total 15 crore EPF accounts are inoperative with around Rs.32, 000 crore deposits in them.
The previous United Progressive Alliance government had suspended interest credits on inoperative Employees Provident Fund (EPF) accounts, in the absence of any fresh contributions in these accounts for three years.
Now the government has decided to credit interest even to inoperative account.
