Online transfer of provident fund accounts is now realism
Posted on: 11/Oct/2013 12:28:51 PM
Transfer of provident fund accounts through online was a long time desire of the people. The Government has taken lots of initiative to make this is a reality. The organization has directed its field staff to do away with physical movement of paper from October 31.
The facility was made available after the launch of the EPFO’s online transfer claim portal on October 2. The EPFO has set up a central clearance house for account transfer. It now expects to transfer the PF accounts in three days. It started registering digital signatures of companies from July 25, a prerequisite for availing the facility. Over 30,000 employers have registered by now. According to sources, around 80 per cent of the firms with more than 500 workers have registered their digital signatures with the EPFO.
Officials said it is easy for the IT sector companies as they already have digital signatures to comply with the rules of the Ministry of Corporate Affairs. Job switches are frequent in big firms employing over 500 people, especially in the IT sector. The EPFO managed PF accounts of about 6.9 lakh establishments in 2011-12.Now, papers are moved and Annexure K is used to transfer accounts from one office to another. It contains details of the period of service with an employer and money deposited in the provident fund account.
Online transfer will significantly reduce the EPFO’s workload. The organization receives about 13 lakh claim applications every year.
