Retirement fund body EPFO will soon approach the Finance Ministry on the transaction limit of Rs 1 lakh for accounts opened under Jan-Dhan Yojana as it cannot credit PF claims of higher amounts in such accounts.
Employees’ Provident Fund Organisation has found that it would be unable to credit PF withdrawals of more than Rs 1 lakh to bank accounts opened under Pradhan Mantri Jan-Dhan Yojana which are being seeded with Universal PF Account Numbers (UAN).
During a recent review meeting chaired by EPFO’s Central Provident Fund Commissioner K K Jalan, a senior official said, the limits applicable to Jan-Dhan bank accounts was discussed and it was pointed out that more clarity is required with regard to PF transfers.
A maximum of Rs 1 lakh can be deposited in such bank accounts in a financial year.
According to the official, using such accounts for KYC seeding may create operational problems if the payment to be made to members exceeds the specified limit (Rs 1 lakh).
According to the minutes of the meeting, Jalan has asked officials to make a formal reference to the issue so that it could be taken up with the Department of Financial Services (Finance Ministry.)
Prime Minister Narendra Modi had launched UAN on October 16. This portable PF accounts number can be used by the subscribers from any part of the country throughout his life.
UAN will be a big tool of social security in the hands of over 5 crore workers in organised sectors as they can get update on PF contribution on real time basis. Besides, they would not have to apply for transfer of PF account on changing jobs.
Since EPFO has recently made it mandatory to seed bank accounts with UAN, subscribers are opening accounts under PMJDY and providing those for seeding with their alloted UAN.
PMJDY is a National Mission for financial inclusion to ensure access to financial services including savings & deposit accounts, remittance, credit, insurance and pension in an affordable manner.