EPF Account: Today we are going to tell you when the PF account gets closed and what happens to the amount deposited in the closed account.
New Delhi: If you do a job somewhere, then you will have an EPF account and your PF will be deposited every month. But many times but this account can also be closed due to many reasons, after which the account holder may have to face trouble. Today we are going to tell you when the PF account gets closed and what happens to the amount deposited in the closed account.
Account transfer happens on change of company
Let us tell you that after changing the job, the person has to transfer his PF account from the old company to the new company. If the employees do not do this and the old company is closed then the PF account can be closed. But this happens when there is no transaction of any kind with EPFO ACCOUNT for 36 months. In such a situation, it is put in the ‘inoperative’ category.
Account is also closed due to these reasons
- Apart from this, there are some other reasons for closure of PF account. Who are these..
- When the account holder settles abroad, then the PF account becomes inactive.
- When the PF holder dies, the account becomes inactive even in such a situation.
- Apart from this, the account becomes inoperative even when the employee withdraws all his retirement funds.
This is for the money deposited in an inactive account.
- Even after being inactive, you keep getting interest on the money deposited in the account. This money can also be withdrawn.
- Earlier, interest was not available on these accounts, but in the year 2016, the rules were amended and interest was started paying.
- Interest accrues on the PF account till you reach the age of 58 years.
- If the account remains dormant for seven years, the balance that is not claimed is transferred to the Senior Citizen Welfare Fund (SCWF).
- In SCWF, this amount stays for 25 years. During this time you can claim the amount. The government also gives interest on this fund.
How to activate closed account?
To get the PF account activated again, you have to go to the Employees’ Provident Fund Organization and apply. The special thing is that even after becoming inactive, interest remains on the money lying in the account. That is, your money is not lost, you get it back.
