Advances & Withdrawals, Interest, and Settlement of Final Accounts

Disclaimer: This document is intended solely for educational purposes. The content herein is subject to change based on evolving finance trends and any relevant rulings by the Government of India. Readers are advised to consult with qualified professionals for specific guidance related to their individual circumstances.

Advances & Withdrawals  

Q1. Whether provident fund provides for any refundable loan for Housing etc.?

No. But, non-refundable loans for housing is available.

Interest

Q1. What is the method of crediting interest to the P.F. subscribers?

The compound interest is credited on monthly running balance basis at the statutory rate declared for each year. 

Q2. Is there any financial loss to EPF members due to the delay in updating of interest in the member passbook?

Updating of member passbook with interest is an entry process. The date on which the interest is entered in the passbook of the member has no actual financial bearing as the interest earned for the year on his monthly running balances is always added to the closing balance of that year and it becomes the opening balance for the next year. Hence, the member does not suffer any financial loss in case there is any delay in updating interest in his passbook. Further, if a member withdraws his EPF dues before the interest is updated in his passbook, in that case also at the time of his claim settlement, the due interest is calculated and paid from the date it becomes due automatically by the system. Hence, there is no financial loss to a member in the mentioned later case also

Settlement of Final Accounts

Q1. In case the PF amount is not settled within 20 days to whom the matter is to be reported?

He can approach the Regional P.F. Commissioner in charge of grievances; file a complaint on the website using the EPFiGMS feature in the section ‘FOR EMPLOYEES’. The url for the grievance page is http://epfigms.gov.in/ or he can appear before the Commissioner in the ‘Nidhi Apke Nikat’ program being conducted on 10th of every month.

Q2. Is there any time limit for withdrawal of Provident Fund dues?

Only in the case of resignation from service (not superannuation) a member has to wait for a period of two months for withdrawal of the PF amount.

Q3. When the employer is not attesting the claim form how to submit the application for withdrawal of provident fund?

It is the duty of the employer to attest the application form. In case of any dispute, the member may attain attestation preferably from the bank in which he has maintained his account and thereafter submit the same to Regional PF Commissioner, explaining the reasons for not obtaining the signature of the employer. The Regional P.F. Commissioner will pursue the matter with the employer wherever necessary. If the member has activated his Universal Account Number and linked his bank account and Aadhaar then he can submit composite claim (Aadhaar) which only requires the signature of the member.