New Delhi: Provident Fund (PF) is one of the safest investment instruments for millions of working-class professionals. Both employee and employer contribute 10% of employees basic salary monthly as part of PF investments to the former’s account registered with the Employee Provident Fund Organisation (EPFO). Previously, employees and private employers used to contribute 12% of the basic salary of the employees. The amount deposited in the EPF account of an investor can be withdrawn at the time of retirement, resignation and other emergency circumstances.
For instance, the EPFO, treating COVID-19 as a crisis, has allowed its investors to withdraw a part of their savings to sail through these tough times. You can also withdraw a part of PF funds under several other circumstances.
PF investments are also popular because of higher return rates. At present, EPF is offering an 8.5% interest rate on an annual basis.
However, if you’re planning to withdraw PF funds, then you need to avoid these mistakes to receive your savings on time:
1. Bank Account linking with UAN
You have to ensure that your bank account is linked with your Universal Account Number (UAN) to receive PF funds on time. Also, make sure to check that your IFSC numbers in EPFO records is correct.
2. KYC norms
Withdrawing PF savings also require your UAN account to be KYC compliant. Otherwise, there are chances that your PF request may get cancelled by the EPFO office.
3. Wrong Date of Birth
EPFO can also reject your application if your entered date of birth doesn’t match its records. On April 3, EPFO had issued a circular allowing investors to correct their date of birth b 3 years, bringing respite on the faces of many who were not able to withdraw their funds due to the mismatch.
4. UAN-Aadhaar link mandatory
You should have linked your Aadhaar card with your UAN account to request PF withdrawals. Otherwise, there are chances that EPFO may reject your request. Also Read: NABARD NABCONS Recruitment 2021: Applications invited for over 80 vacant posts, see details
5. Wrong bank details:
You need to ensure that your bank account details, including the bank’s IFSC code, are 100% correct before applying to withdraw PF funds. In case of the smallest of errors in the bank account, your request could get rejected. Also Read: IIT Hyderabad, WiSig announce ‘Koala’, India’s first 5G SoC to drive NB-IoT applications