Transferring your provident fund when you change jobs is to be made automatic from next month, according to a report in The Times of India.
“We are trying to ensure transfer of money if one changes jobs, without any application, in three days,” chief provident fund commissioner VP Joy has been quoted as saying in the report.
However, he has also said that the account holder has to have a verified Aadhaar ID. In such cases, the account will get transferred to any part of the country automatically.
“This system will be in place very soon,” he has said.
The move is aimed at addressing the problem of premature closure of accounts, which usually happens when a subscriber changes jobs.
The PF account has already become a permanent account. The government had introduced the Universal Account Number or UAN in October 2014. UAN is a unique identification number accorded to EPF subscribers. According to the EPFO website, the UAN acts as an umbrella for the multiple member identities allotted to the same member by different establishments.
However, once a subscriber changes jobs, it has been his responsibility to get the account transferred. With the latest move to automate the transfer of account, the EPFO is moving one step ahead in being customer friendly.
Joy has also said the retirement fund body is planning to start a campaign to sensitise the subscribers why the PF must be withdrawn only for “major purposes like housing, education of children, or serious hospitalisation”.
Source: First Post