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| Sunday, 23 November 2003 |
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CB refutes claims of dormant EPF accounts by S. Selvakumar A government proposal in the recent budget to transfer a sum of Rs. 4.5 billion lying in dormant accounts with the Employees' Provident Fund maintained by the Central Bank is very unlikely to materialise as the Central Bank does not have any dormant accounts, a highly placed Central Bank source told theSunday Observer. The source said that this will be conveyed to the Monetary Board who in turn will inform the Treasury of the situation. Finance Minister K. N. Choksy delivering his budget proposals said that detailed analyses of EPF data revealed that there were large numbers of EPF accounts with low balances which have been dormant for long periods, were very unlikely to ever being redeemed. Rs. 4.5 billion of such funds will be transferred to the government as non tax revenue with the provision to the EPF of a contingency guarantee, as necessary. He also said that a part of this amount will be used for the proposed unemployment benefit insurance scheme. Central Bank source said that it cannot transfer any funds lying in operational accounts of the EPF and this would need an amendment to the EPF Act. He also said that there are 135,000 companies registered and expected to contribute their commitment and the employees contribution to the EPF. However, of these companies only less than half, around 48,000 to 50,000 companies contribute to the EPF. Asked about the rest he said some of the balance companies may have been closed down or simply failed to fulfil their obligation and added that this was a matter for the Labour Department who will have to enforce the law. "We are only maintaining the funds and pay whenever claims are made by the employee concerned or to his or her nominee if the employee dies, he further explained. |
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