In-operative PF accounts to earn interest from April 1: EPFO
Retirement fund body EPFO on Tuesday decided to provide interest on inoperative accounts from April 1, a move which will benefit over nine crore such account-holders having total deposits of over Rs 32,000 crore.
The decision was taken by the Employees’ Provident Fund Organisation’s (EPFO) apex decision making body Central Board of Trustees’ headed by Labour Minister Bandaru Dattatreya.
“UPA government stopped interest on inoperative accounts. Now we have taken a pro-worker decision. The UPA government which was claiming to be a pro-worker, stopped the interest on inoperative accounts.
“Now, we have decided to credit interest in inoperative accounts. There will not be any inoperative accounts,” Dattatreya told reporters after the CBT meeting here.
He also informed that interest on deposits in inoperative accounts will be credited from from April 1.
Inoperative accounts are those wherein the contribution has not been received for 36 months.
EPFO had stopped payment of interest to such accounts from April 1, 2011. The move was aimed at discouraging parking of funds with EPFO in these dormant accounts.
The decision will benefit over nine crore such account holders having total deposit of around Rs 32,000 crore.