EPFO to introduce unique EPF account number soon, among steps to make system transparent

Employees subscribing to provident fund have not been able to exploit the entire benefit due to cumbersome procedure and a general lack of awareness of the rules. Now, through the efforts of experts and the organisation, much could change

Provident fund in India is a well-known concept for income security. But despite it being in existence since a long time, there is a lack of transparency. Many of us have little knowledge about our provident fund (PF) account. Experts are demanding a change in the PF policy, to make it more employee-friendly.

The Employees' Provident Fund Organisation (EPFO), India, is the largest governing body of provident funds. Contributing to the employees' provident fund (EPF) account is easy, but the withdrawal process is harrowing.

Let alone clueless employees, even the human resources departments of many private organisations are quite unaware of the EPF rules and regulations. For instance, they don't know that an employee could contribute more than the standard provident fund amount deduction, although the employer will not increase his share of the contribution.

Industry experts are also demanding one standard EPF account number for each employee throughout his/her career. Currently, when an employee shifts an organisation, he/she is given a fresh account. A standard provident fund number would ensure that the contributions are not spread over different EPFOs and would at the same time earn good compounded returns, with the interest rate at a high 9.5%.

Speaking to Moneylife YS Kataria, director (media and communication), Ministry of Labour and Employment, said, "We are working on a process where all the account holders will be provided with a unique EPF number, like the unique identification number. This process will be worked out in the next six months."

At the time of withdrawal, an employee needs to go to his previous employer. And the local provident fund office directs the employee to the EPFO where the establishment is registered. Experts say, "The PF should be accessible through the local provident fund office and the employee should not have to go through the human resources department of the previous organisation."

This issue could be resolved shortly, as the EPFO announced recently that subscribers of EPFO would soon be able to monitor their accounts online. "The employee would not have to go back to his previous employer once the EPF subscriber can see his account details online," Mr Kataria explained.

Many people are generally uninformed about their EPF contribution. This results in the premature closure of the account as they don't want to go to their previous employer and they are also unaware of the procedures. Even the EPFO has decided to stop interest payment on the employee PF accounts where there is no activity seen over a prolonged period. In this matter, industry analysts believe that premature withdrawal of funds should be charged a penal interest and employees should be made aware of the importance of continuing the account to avail of better returns later on.

The most common complaint against the EPFO is that account holders do not get any answer to their queries. But consumer activists point out that the problem can be overcome by the account holder invoking the Right to Information (RTI) Act to get details of the EPF account, without having to go to the EPFO office.

Experts also point out that sending periodic statement details of the PF account to contributors, even if the account is in another city, would ensure better transparency.

Other initiatives, like educating people through vernacular advertisements about the rules and regulations of EPF and providing a smart-card option, would also help people to understand better about the PF policy.

"We have initiated a lot of awareness to discourage premature withdrawals. Also with all the details being made available online, such problems will be reduced," Mr Kataria said.




4 years ago

Is there someone to observe the working of EPF Dept., I feel it is the worst managed dept. Will MLF write a real heart rending article on the same so that people know the internal working in EPF Dept.,
I feel that will be a real work for the society at large.


4 years ago

PF's dept do not transfer money from one account to another, a person who does not get interest due to non transfer, who will bear the Interest dept or concerned officials

manjit kumar lal

4 years ago

Dear Sir
Our EPF No DL/30003/318 but now i have not found our balance please send
With Regards
Manjit Kumar Lal

gaurav verma

5 years ago

i have my pf account no. UP/30037/2620 so how i can get to know new account no. and details for the account

Dashrath Singh

5 years ago

New Delhi

Lyndon DSilva

5 years ago

can someone tell me where is the EPF office in mumbai..

Dashrath Singh

5 years ago

Dear Sir,
My self Dashrath Singh. I have received PF transfer letter copy on 7 th Feb 2007. total amount 117488/- cheque no. 250440 of SBI Sanganeri Gate Jaipur. My old PF account no. is RJ/8882/8 and New PF account no. is
DL/649/213. But amount not reflect my new account Kindly help me update my both a/c pf status.

Tira T

5 years ago

Notwithstanding any innovation and computerisation of the highrst order and latest generation, unless and unless the posts and postings in the Central PFO and EPFO are delinked from the "market forces" based on "demand and lobbying", meaning thereby the highest bidder or the most well-networked lobbyist getting the posts and choicest postings, and unless the CPFO/EPFO is made unreserved and its posts made open to all services and the bureaucrats and employees alike making the jobs in this organisation as a money making machine, the plight of the members of the EPFO will remain the same. The mindboggling amount og money earned daily by even the lowest despatch clerk in EPFO will give an idea of the deep rooted and fully institutionalised and duly sanctioned system of corruption prevailing there. The Regional Commissioners' posts in the EPFO must not remain the fiefdom of the IAS to be accommodated in their "home" states at will, of course to be obtained through open tenders. The system and the top echelon being ritten and corrupt, no innovation will change this filthy but necessary evil.


5 years ago

Thank you for an informative article. Epfo is probably the best saving instrument for salaried people, but is totally mis-represented by people who would rather encourage and evangelise other saving instruments, and this includes hr and accounting departments in companies.

The big reason for this is that epfo does not make any commission or agent fees or kickbacks - unlike other promoted options like compulsory employee bank accounts in specific banks and co-linked saving instruments.

That is the simple truth.



In Reply to Malq 4 years ago

When Politicians and Judiciary are involved in involved in siphoning of funds then who will hear? Further, we have heard cases of Ghaziabad and CBI enquiry at Kanpur, so funds are not transferred easily unless?????


In Reply to Malq 5 years ago

may be instead of creating another new number , PAN number or Nandan's UID could be used for the account number

GoM likely to take call on Cairn deal tomorrow

Earlier, the then oil minister Murli Deora was accused of delaying approval for the transaction, but he moved to the corporate affairs ministry in late January and there is still no sight of a decision

New Delhi: A ministerial panel is likely to decide tomorrow if the government should approve Cairn Energy's sale of stake in its Indian unit to mining group Vedanta Resources with conditions or without any precondition, reports PTI.

The Group of Ministers (EGoM) headed by finance minister Pranab Mukherjee is scheduled to hold its first meeting at 1630 hours on 27th May, an oil ministry official said today.

The Cabinet Committee on Economic Affairs (CCEA) had on 6th April asked the GoM to vet the $9.6 billion deal, but the panel has not held a single meeting in seven weeks since then.

Earlier, the then oil minister Murli Deora was accused of delaying approval for the transaction, but he moved to the corporate affairs ministry in late January and there is still no sight of a decision.

Industry sources said they were apprehensive about the prospects of the GoM arriving at any decision tomorrow as key oil ministry officials—special secretary PK Sinha and joint secretary exploration DN Narasimha Raju—who have been dealing with the subject for the past nine months, are on official tour abroad.

Oil secretary GC Chaturvedi, who came to the ministry of petroleum and natural gas only this month, is still grappling with the subject while oil minister S Jaipal Reddy is also relatively new to the job.

Sources said things have also become complicated for the GoM after Solicitor General Gopal Subramaniam reaffirmed his earlier opinion that the government can impose preconditions like asking Cairn or its successor to share cess and royalty with state-owned Oil and Natural Gas Corporation (ONGC) in the all-important Rajasthan block.

In his second opinion, which was sought by Mr Mukherjee, the SGI said, “The government is not bound to grant consent ipso facto or mechanically.”

The precondition that Cairn/Vedanta agree to cost-recovery of Rs18,000 crore in royalty that ONGC has to pay on the Rajasthan block would be “defensible on parameters of public and national interest,” the SGI said in the second opinion.

Sources said the GoM itself is split in the middle on the issue of treating royalty paid by ONGC as cost-recoverable from its revenues. While Mr Reddy has played it safe by giving an alternative to ONGC’s demand, which was originally made a month before the Cairn-Vedanta deal was announced in August last year, the law ministry and Planning Commission have backed making cost-recovery of royalty a precondition for approval.

The finance ministry is in favour of Mr Reddy’s second option of the government giving consent without any precondition and taking appropriate decisions to protect ONGC’s interests.

It remains to be seen if Mr Mukherjee will sideline the SGI opinion in approving the deal.

In his first opinion on 24th March, the SGI had categorically stated that the transfer of Cairn India shares to Vedanta should be allowed only if the latter agrees to preconditions on the deal.


Ind-Swift Lab’s net rises 58% to Rs89 crore in FY’11

For the year ended 31 March 2011, standalone net profit of Ind-Swift Laboratories increased to Rs87.61 crore from Rs5,796 crore in the previous year

Drug maker Ind-Swift Laboratories Ltd said its consolidated net profit grew 58.69% to Rs89.47 crore in the year ended 31 March 2011, over the corresponding period a-year-ago.

The group had a consolidated net profit of Rs56.38 crore in the last fiscal, Ind-Swift Laboratories said in a filing with the Bombay Stock Exchange.

Referring to the robust growth, vice-chairman and managing director NR Munjal said it was due to its strong product pipeline and successful accreditation of the company’s manufacturing facilities by the Japanese and Korean Regulatory Authorities.

He further said that the company’s focus on exports to regulated and semi-regulated markets of the US, Japan and Europe had also resulted in adding to the overall growth.

The group’s consolidated total income climbed up by 32.34% to Rs1,048.52 crore in the year under review from Rs792.26 crore in the same period last year.

For the year ended 31 March 2011, standalone net profit of the company increased to Rs87.61 crore from Rs5,796 crore in the previous year.

Standalone total income of the firm rose to Rs1,031.20 crore in the year under review from Rs790.52 crore

For the fourth quarter ended 31 March 2011, its standalone net profit surged to Rs26.39 crore from Rs20,75 crore in the same period last fiscal.

Standalone total income increased to Rs305.22 crore in the three-month period under review from Rs201.27 crore in the March quarter previous year.

The board of directors at its meeting held recommended a dividend of Re1 per equity share of Rs10 each of the company.

On Thursday, Ind-Swift Laboratories ended 1.21% up at Rs50.35 on the Bombay Stock Exchange, while the benchmark Sensex gained 1.11% to 18,044.64.




5 years ago

Ind-Swift Limited is a good proxy for somebody who wants to play the upside from atorvastatin generic launch in the US

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