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‘Interest to be credited on inoperative EPF accounts’

'There is around Rs 43,000 crore in inoperative (EPF) accounts,' Dattatreya says

Policy Pulse
Publish Date: May 9 2016 3:36PM | Updated Date: May 9 2016 5:41PM

‘Interest to be credited on inoperative EPF accounts’

Around Rs 43,000 crore is lying in inoperative Employees' Provident Fund accounts and interest would be credited to such accounts, the government has said on Monday. 

 
In Lok Sabha, Minister of State for Labour and Employment Bandaru Dattatreya said that 118.66 lakh claims were settled by the Employees' Provident Fund Organisation (EPFO) in 2015-16, and added that 98 percent of them were settled within three weeks. 
 
"There is around Rs 43,000 crore in inoperative (EPF) accounts," Dattatreya said during Question Hour. 
 
Pointing out on steps taken, he said it has been decided recently to credit interest to the inoperative accounts. 
 
Stressing that there is lot of confusion about inoperative and unclaimed accounts, the minister said the government has launched the initiative for one member, one EPF account. 
 
In 2015-16, 118.66 lakh claims were settled by the EPFO while the numbers stood at 130.21 lakh and 123.36 lakh in 2014-15 and 2013-14, respectively. 
 
According to the Minister, 1.18 lakh claims were pending for settlement in 2015-16. 
 
He also said that action would be initiated against those violating EPFO rules.