Transfer EPF money or risk fraud5 min read 23 Oct 2013, 07:26 PM IST
EPFO has very shoddy KYC processes in place lending itself to fraud; so take your money with you
Earlier this month, the Employees’ Provident Fund Organisation (EPFO) sent a memo to its officials advising extreme caution in dealing with claims made on inoperative accounts. The circular can be read here: https://goo.gl/jAIj1A . The memo suggests inoperative accounts, which do not see fresh contributions, and accounts maintained with defunct employers are at a greater risk of fraud. This is quite plausible. An inoperative EPF account is something you maintain with your previous employer. It’s inoperative because neither you nor the ex-boss makes any fresh contribution into that account. And since you don’t even transfer that money or withdraw, it just sits there at first getting interest for three years and then becomes idle altogether.