Be careful in EPF account, it can be closed on its own... you may have to struggle to withdraw money

Many times the PF account gets automatically closed when the company closes, due to which the money gets stuck. Also, the way to get the account certified is also closed. When this happens, withdrawing money from the PF account becomes a very difficult task. When the account is closed, the entire money lying in the account gets stuck and one has to struggle hard to withdraw it. Apart from this, fund transfer also becomes a difficult journey if the information about leaving the company is not given in the EPFO system.

If the old company is closed and you have not transferred your money to the new company's account or have not done any transaction in this account for 36 months, then the account will automatically be closed. Not only this, you may have to struggle hard to withdraw money from this account. However, interest continues to accrue on this inoperative account as well. If the entire money has been withdrawn from the account, then interest will not be paid on it. At the same time, interest will not be paid even if the retirement period of the EPF account has been completed. Also, if the age of the account holders is 58 years and the EPF balance has not been withdrawn for a long time, then the interest amount will not be given.

To settle a claim related to inoperative PF accounts, it is necessary that the claim is certified by the employer of the employee. However, in the case of employees whose company has been closed and there is no one to certify the claim, the bank certifies such claim on the basis of KYC documents. If the amount is more than 50 thousand rupees, the approval of the Assistant Provident Fund Commissioner is required. Similarly, if the amount is more than 25 thousand rupees and less than 50 thousand rupees, the approval of the fund transfer is given by the account officer. If the amount is less than Rs 25,000, then it requires the approval of the dealing assistant.

The amount deposited in the account holder's account is invested in many places. A part of the earnings from this investment is given to the account holders in the form of interest. Currently, EPFO 85% is invested in debt. These also include government securities and bonds. The remaining 15 percent is invested in ETFs. PF interest is decided on the basis of earnings from debt and equity.