Back in 2012, the Employee Provident Fund Organisation (EPFO) had taken the decision to stop paying interest on dormant EPF accounts. At that time, the decision was taken to discourage account holders from putting money into such accounts that have not received contributions from either the account holder or his/her employee for a period of 3 years.
But on Tuesday, the EPFO decided to review this decision. The review will be done by the Central Board of Trustees (CBT), which is chaired by Labour Minister Bandaru Dattatreya.
If this decision is taken, close to 40 million EPF accounts stand to benefit from it.
The EPF has been in the news a lot recently because of the Finance Minister’s proposal to tax EPF withdrawals. This had received widespread criticism, before it was eventually withdrawn.
EPF is a popular tax-saving avenue of the salaried class and one of the primary ways how Indians save for retirement.
Interest even on inoperative EPF accounts
Published On - March 30, 2016
