Lok Sabha Question No. 502 (UNSTARRED), answered on 2017-02-06
Subject: Inoperative EPF Accounts
Ministry: LABOUR AND EMPLOYMENT
Asked by: BAHADUR SINGH KOLI, M. CHANDRAKASI

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA UNSTARRED QUESTION NO. 502 TO BE ANSWERED ON 06.02.2017

## INOPERATIVE EPF ACCOUNTS

## †502. SHRI BAHADUR SINGH KOLI: SHRI M. CHANDRAKASI:

Will  the  Minister  of  LABOUR  AND  EMPLOYMENT  be  pleased  to state:

- (a)the criteria adopted for classifying an EPF account as inoperative;
- (b)the  total  number  of  inoperative  EPF  accounts  as  on  date  and  the total value of money deposited in these accounts;
- (c)whether annual interest for the money in these accounts is credited regularly  and  if  so,  the  details  thereof  and  if  not,  the  reasons therefor;
- (d)the action taken/being taken to pay the due amount to the eligible persons; and
- (e)whether there is any provision for the employees to withdraw from PF account in any part of the country and if so, the details thereof?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI BANDARU DATTATREYA)

- (a): The provision of inoperative accounts are mentioned in paragraph  72(6)  of  the  Employees'  Provident  Funds  (EPF)  Scheme, 1952. An account becomes inoperative in following cases:-
- (i)    In  case,  any  amount  becoming  due  to  a  member  as  a  result  of supplementary  contribution  from  the  employer  in  respect  of  leave wages/arrears  of  pay,  installment  of  arrear  contribution  received  in respect  of  a  member  whose  claim  has  been  settled  on  account  but which could not be remitted for want of latest address.

- (ii)   In case of accumulation in respect of any member who has either retired from service after attaining age of fifty-five years or migrated abroad permanently or died, but no application for withdrawal under paragraphs 69 or 70, as the case may be, has been preferred within a period of thirty six months from the date it becomes payable.
- (iii)  In  case  if  any  amount  remitted  to  a  person,  is  received  back undelivered, and it is not claimed again within a period of 36 months from the date it becomes payable.

In all above cases the amount shall be transferred to an account to be called the Inoperative Account.

- (b): As  on  31.03.2016,  a  sum  of  Rs.  40,865.14  crore  in  9,29,89,648 accounts had been classified as inoperative accounts.
- (c): As  per  paragraph  60(6)  of  the  Employees'  Provident  Funds Scheme,  1952,  interest  shall  not  be  credited  to  the  account  of  a member from the date on which it has become Inoperative Account, under the provisions of sub-paragraph (6) of paragraph 72.
- (d): The following actions have been taken by Employees' Provident Fund  Organization  (EPFO)  to  pay  the  due  amount  to  the  eligible persons :
- (i) A portal namely 'Inoperative Accounts Online Help Desk' to assist the  members  to  identify  their  inoperative  accounts  has  been launched.
- (ii) Allotted Universal Account Numbers (UAN) to identify the members without intermediation of the employers.
- (iii) Awareness campaigns have been undertaken through electronic as well as print media from time to time to educate the members to transfer or withdraw their Provident Fund (PF) accumulations.
- (e): For withdrawal, the member is required to submit his claim form to the office of EPFO where his account is maintained.

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