EPF scam: Withdraw or transfer your balance, but don't keep it idle

Scamsters have drained out cash from provident fund accounts by making fake claims, reports The Economic Times today. Balance in about 2.5 crore, or 30 percent, of provident fund accounts have turned negative because of this. Fraudsters created fake documents of identity to open bank accounts to which funds were transferred from inoperative accounts, the report said. (Read full report here)

If you are one among the 8 crore who have an EPF account, you should really be worried. In fact, if you have changed jobs and not bothered to either withdraw the funds or get the balance transferred to the new EPF account, here are a few things you should do.

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[caption id="attachment_1180279" align="alignleft" width="380"] EPFO. Courtesy: Website. [/caption]

First: Decide if you want to withdraw the funds or transfer the balance to the new employer's PF account.

Second: Check your EPF balance. You could do so online as well and would not take more than 5 minutes. Read this Firstpost articleto know more.

Third: If your decision is to withdraw, follow these steps.

Step 1: Visit this website and download form here (Form no 19).

Step 2: Fill in the form and submit it to your previous employer. You will be able to get the EPF account number from your salary slip.

Fourth: If your plan is to transfer the balance to the new EPF account, it is a wise step because you will be putting away a large chunk towards your retirement needs. Moreover, transferring your EPF balance is not that difficult either, especially since the EPFO has launched an online facility for this.

For online transfer of the balance, however, your employer should be registered with the EPFO and should also meet a few mandatory operational requirements laid down by the organisation. If your employer is registered with the EPFO, you just need to register yourself on the site and fill form No. 13. This form is to be submitted to your present employer.

Now, if your employer does not meet the mandatory operational requirements of the EPFO and hence not registered, you will have to take the brick-and-mortar route: download the form, fill in the details and submit the hard copy to your employer.

However, we cannot say how long it would take for you either to get the money in case you choose to withdraw or for the transfer of your balance to the new account. For some it has been a breeze, while for others it has been a long wait. We suggest, you do a proper follow-up, any which way.

The Economic Times report today is not the only reason as to why you should not keep your money idle in the EPF account. If your EPF account is inoperative for more than three years, you do not even earn interest on the money which is lying idle. So, withdraw or transfer your PF balance,for your own sake.

Because, like an idle human mind, an idle account is a devil's workshop.