EPFO setting up online facility for PF transfers, withdrawals
19 Apr 2013
The Employees Provident Funds Organisation (EPFO) has made provident funds claims and settlement easy for over 50 million subscribers by allowing transfers and withdrawals online.
The EPFO is in the process of setting up a central clearing house and the online facility will be available from 1 July, according to an EPFO statement.
"We have decided to set up a central clearance house which will be operational on 1 July. This will enable subscribers to apply online for settlement of withdrawal and transfer of funds," Central Provident Fund Commissioner Anil Swarup said on the sidelines of a PHD conference.
"The biggest problem faced by the subscribers is transferring their accounts on change of job. This central clearance facility will expedite the process", he added.
The online facility will enable subscribes to track the status of their applications for transfer and withdrawals, facilitating quicker transfers and withdrawals.
EPFO, however, is yet to roll out its plan to provide permanent account number to all subscribers. This is expected to be ready possibly by early next year.
"It would be done in 8-10 months. Since the process of providing permanent account number to all subscribers will take time, we thought of setting up central clearance house first," he said.
The permanent account system will put the onus of verifying details of the PF account on the EPFO, rather than on the previous employers. At present, PF subscribers have to get their applications verified from their employers for settlement of claims.
"The onus of getting the detail of the PF account verified from employers would be on the Employees' Provident Fund Organisation (EPFO) in the new online system for transfer and withdrawal claims," Swarup said.
Meanwhile, the EPFO is expected to renew plans to limit the flexibility available to employers and PF authorities in the definition of basic wages.
The labour ministry had earlier put on hold the move following adverse reports in sections of the media.
However a committee set up by the ministry comprising employers and employees organisations has given its approval to the circular.
