EPFO: The Employees’ Provident Fund Organization (EPFO) has proposed to move Rs 100 crore to the Senior Citizens’ Welfare Fund in unclaimed assets worth over Rs 58,000 crore. The EPFO does this under the 2015 rules of the government.
As per a report in Economic Times, this proposition will be considered in the gathering of the Central Board of Trustees of EPFO to be hung on Saturday.
Unclaimed assets are moved following seven years
As per the Finance Ministry notice gave in 2015, unclaimed assets in EPF and PPF accounts and other small savings scheme for a long time are moved to Senior Citizens Welfare Fund. In any case, this asset stays with EPFO.
The proposition to move unclaimed assets to Senior Citizens Fund is relied upon to be gone against in terms of professional career associations. A delegate of a government’s organization said, “We will consider the government’s proposition to move the unclaimed assets. We think it isn’t unclaimed cash however it is cash which has not been settled. So it ought to stay with the EPFO.”
Will the interest rate increase or reduce?
Interest Rate: Along with this, the interest rate will likewise be considered in the CBT meeting to be held in Guwahati on 11-12 March. As indicated by sources, the interest rate can be held at the degree of 2020-21 or can be decreased to 8.35-8.45 percent relying upon the unpredictability in the financial exchange.
One more media report has communicated the chance of a hike in interest rate. As per this, an increment in the current interest rate of 8.5 percent on the sum deposited in EPF in CBT might be stepped. This is the most minimal interest accessible on PF. Prior, PF loan cost was 8.65 percent in 2018-19, 8.65 percent in 2016-17 and 8.55 percent in 2017-18.
What is Senior Citizens Welfare Fund
SCWF: Unclaimed cash from PPF, Post Office Savings Accounts, EPF, RD and other comparable accounts is kept in the SCW Fund. This asset was laid out in 2015. This asset is utilized for banking and mindfulness programs connected with senior residents.
Typically, prior to moving cash to this asset, associations running PPF, EPF, RD contact clients and request that they take cash. In the event that the cash isn’t taken then it is moved to this asset. This happens when the investor has not connected, his personal residence has changed and he has died without a nominee.
The investor can pull out his cash in no less than 25 years of the exchange of cash in the asset. In the event that the cash isn’t taken for a very long time then the sum deposited in the asset is given over to the Government of India.
