Mismatch of KYC data holds-up EPF interest for 4 mn subscribers
Retirement fund body EPFO was likely to credit 8.5 per cent rate of interest for 2019-20 in the employees’ provident fund (EPF) accounts of around six crore subscribers in one go on Diwali and then at end of December 2020 but around 4 million subscribers of the government’s pension scheme Employees’ Provident Fund (EPF) are yet to receive the interest payment.
According to Mint report, the reason for the delay occurred due to a mismatch of KYC or identification of the employees at the employer’s end. The field officers of EPFO are reaching out to these establishments and authorities.
The interest payments for provident funds are credited on an organisation-wide scale instead of an individual basis, the report added.
The problem of delay in interest payout for 2019-20 was also reported before the KYC issue was highlighted. Around 8-10% of EPF subscribers are yet to receive the payments as of now.
EPFO credits interest (in batches) establishment-wise instead of on an individual subscriber basis, the report says.
EPFO’s Central Board of Trustees, the apex decision-making body under the labour minister, had in March 2020 approved 8.5% interest rate on EPF for 2019-20. In September, the retirement fund body had decided to split payment of 8.5% interest into two tranches of 8.15% and 0.35% but after that, Payout of Interest was decided in one go by the end of December.
EPFO has around 50 million active subscribers.