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EPFO: Is There Any Financial Loss If Interest Update Is Delayed In Your Passbook?

EPFO: Is There Any Financial Loss If Interest Update Is Delayed In Your Passbook?

Employees` Provident Fund Organisation is a statutory frame below the Ministry of Labour and Employment, Government of India. EPFO administers 3 schemes, particularly the Employees` Provident Fund Scheme, the Employees` Pension Scheme, and the Employees` Deposit Linked Insurance Scheme.

The Employees` Provident Fund Scheme is a retirement advantage scheme for personnel running withinside the organised sector. It mandates that personnel make contributions a positive percent in their profits to the fund, that is matched via way of means of the corporation. The fund earns hobby at the collected quantity and is payable to the worker on retirement or in positive different circumstances.

The Employees` Pension Scheme is a pension scheme that offers a month-to-month pension to personnel on retirement. The corporation and the worker make contributions a positive percent of the worker`s profits to the fund, that is used to offer the pension.

The Employees` Deposit Linked Insurance Scheme is an coverage scheme that offers a lump sum charge to the nominee in case of the worker`s demise whilst in service. The corporation contributes to the fund, and the advantage is payable to the nominee of the worker.

EPFO additionally presents numerous on line offerings to its contributors, such as on line registration, charge of contributions, and checking the repute of claims.

Is there any economic loss to EPF contributors because of the put off in updating of hobby withinside the member passbook?

According to EPFO, updating of member`s passbook with hobby is an access process. The date on which the hobby is entered withinside the passbook of the member has no real economic bearing because the hobby earned for the 12 months on month-to-month strolling balances is constantly introduced to the remaining stability of that 12 months and it will become the hole stability for the following 12 months.

Hence, the member does now no longer go through any economic loss in case there's any put off in updating hobby withinside the passbook.

Further, if a member withdraws his EPF dues earlier than the hobby is up to date withinside the passbook, if so additionally on the time of his declare settlement, the due hobby is calculated and paid from the date it will become due mechanically via way of means of the system.

Hence, in this situation too, there's no economic loss to a member.

With the adoption of virtual strategies in governance, many offerings are to be had on line and a user/subscriber isn't required to go to the workplace in-person. One such facility is checking the stability of your provident fund account.

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