Retirement fund body Employees’ Provident Fund Organisation (EPFO) has asked its field staff to strictly follow guidelines while settling claims out of inoperative accounts in order to reduce the risk of frauds.

Provident fund accounts, which fail to make contributions for 36 continuous months to the EPFO, are classified as inoperative accounts.

“Instructions shall be followed scrupulously for settlement of claims out of inoperative accounts. All care shall be taken to reduce the risk of frauds and to ensure that claims are authentic and the payments are made to genuine claimants,” an EPFO office order to field staff said.

As per the modalities for settlement of claims out of inoperative accounts, attestation of the claim by the employer is needed.

In cases where, the employer is not available to identify the claimant member, the attestation of claim by bank authorities is required along with know you customer (KYC) document for applicant's identification and his/her proof of residence.

The KYC documents for the purpose include PAN card, voter identity card, passport, ration card, ESI identity card, driving licence and any other identity card issued by government including Aadhaar.

The procedure also provides that in cases where the settlement amount is beyond Rs50,000, the claims are approved by Assistant Provident Fund Commissioner.

In cases where settlement amount is more than Rs25,000 but less than Rs50,000, the claims are approved by the Account Officer. For an amount less than Rs25,000, the claim can be approved by Dealing Assistant.

The EPFO had stopped crediting interest in the inoperative account from 1 April 2011. However, these accounts have definite claimants and the account holders can claim for withdrawal or transfer of provident fund.

According to information available, Rs26,496.61 crore is lying in the inoperative PF accounts with EPFO as on 31 March 2014.