You will not lose money if your Employees Provident Fund (EPF) account passbook is not updated. According to the Government, EPF member passbook update is just an entry process and the date on which interest is entered in the passbook has no financial implications for the account holder.
In a written reply to a query in the Lok Sabha on Monday (March 13, 2023), Union Minister of State for Labour and Employment Rameshwar Teli said that the EPF members do not suffer any financial loss even if the passbook is not updated.
According to the minister, EPF’s monthly running balance is always added to the closing balance of that year. Therefore, the date of entry in the passbook does not affect EPF interest credit.
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“Updating of member passbook with interest is an entry process only, the date on which the interest is entered in the passbook of the member has no actual financial bearing as the interest earned for the
year. His monthly running balances is always added to the closing balance of that year. Hence, the member does not suffer any financial loss,” the minister said.
Delay in EPF interest payment
On the question of delay in EPF interest credit to accountholders, the minister said that till 6th March 2023, accounts of members of 98% of contributory establishments were credited with interest.
The minister further said that EPF interest credit is an ongoing process which is taken up in a scheduled manner without hampering the regular claim settlement.
As per the provisions of Paragraph 60(1) of the Employees’ Provident Fund (EPF) Scheme, 1952, Employees’ Provident Fund Organisation (EPFO) shall credit to the account of each member interest at such rate as may be determined by the Central Government in consultation with the Central Board of Trustees (CBT), Employees’ Provident Fund (EPF),” the minister said.
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“Account updation with interest credit is a comprehensive exercise requiring scrutiny of each individual transaction made in respect of each and every individual member’s accounts, thus making the entire process very exhaustive. Till 06.03.2023 accounts of members of 98 per cent. of the contributory establishments have been credited with interest. This is an ongoing process which is taken up in a scheduled manner without hampering the regular claim settlements,” he added.
