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The public provident fund (PPF) account is opened to accumulate a corpus for meeting retirement needs at banks or post office. To keep the account active an individual needs to invest a minimum of Rs. 500 in a fiscal year. But what if one is not able to invest a minimum of Rs 500 in a year? What happens when PPF account becomes inactive – does investor lose interest or has to close the account or he can he invest in Public Provident Fund.
When does a PPF account becomes dormant?
The minimum deposit amount is Rs 500 and maximum Rs 1.5 lakh per year. If the minimum amount is not deposited in a financial year, PPF account becomes inactive or dormant. Year is counted as from Apr of a year to Mar of next year ex Apr 2015 to Mar 2016.
What happens if PPF account becomes dormant?
Though the amount lying in the PPF’s account will continue to accrue interest during this period, the investor will not be able to avail of a loan against the PPF and won’t be eligible for a premature withdrawal. But if the investor’s PPF account has already matured, it will not earn any interest from the date of maturity. Matured accounts cannot be revived, but penalty will be payable in order to claim the maturity proceeds.
If the PPF account is close to maturity, you can apply for an extension, with or without further contribution, for a period of five years from the date of maturity to be able to earn an interest on the accumulated amount.
Overview of PPF account
PPF comes under the THE PUBLIC PROVIDENT FUND ACT. Features of PPF are given below. Our article Understanding Public Provident Fund, PPF explains in detail about the investment amount, interest rate, power of compounding, who can open, where can one open etc.
EPFO has launched a mobile application App and other phone-based services to access PF account details for its over 3.54 crore subscribers, 49.22 lakh pensioners and 6.1 lakh employers. This article covers ,What are the new services introduced by EPFO? What is Mobile App of EPFO? What is SMS based EPF service? What is Missed Call service? How to use them?
Overview of the EPFO Mobile App, SMS service, Missed Call
EPFO has launched a mobile application App and other phone-based services to access PF account details. The services are
- Mobile Application (EPFO Mobile App)
- SMS based UAN Activation and
- Missed Call service
EPFO Mobile App: Once the new mobile application from the EPFO website is downloaded, the members would be able to activate their UAN accounts from their mobile phones and can also access their accounts to view monthly credits and details available with EPFO. EPF pensioners can also access their pension disbursement details through this mobile app. The employer can also view remittance details. EPFO’s new mobile application is available on EPFO’s website and is in APK format so works only on Android phones. Android application package (APK) is the package file format used by the Android operating system for distribution and installation of application software and middleware.
SMS Service: A new SMS-based UAN activation service was also launched, which enables members to activate their accounts by sending an SMS to 7738299899. Once UAN is activated, the member becomes eligible for all services under the programme such as credit alerts, passbooks and the like. This new service is helpful mainly to those members who may not have easy access to computers or smartphones. EPFO already has in place a Short Code SMS service, which helps members get their details along with contribution and PF balance through an SMS to 7738299899.
The format of the SMS is EPFOHO UAN followed by first three characters of preferred language.
For example, if you would like to receive SMS in English, you should send an SMS as EPFOHO UANENG to 77382 99899. The EPFO would send the members details available with it along with details of the KYC seeded, last contribution and Total PF balance.
Missed Call:A missed call to 011 22901406 ,at no cost, will fetch the user all the required details. This facility is available only to UAN members.
EPFO Mobile App
EPFO has been upgrading itself on technology front to access the EPF account access and transfer of EPF account. The new EPF Mobile App is another initiative to let people access there EPF details. Mobile Application can be used by employees, pensioners and employers.
How to Download the Mobile App?
You can download the mobile App from EPFO webpage to download EPFO Mobile App. It is in APK format so works only on Android phones. Android application package (APK) is the package file format used by the Android operating system for distribution and installation of application software and middleware. The App is not available at Google Play store. When you download please turn-on Allow Installation of apps from unknown sources under the Security settings on your android phone. The App looks as shown in image below:
Employees and EPF Mobile App
- They can activate their UAN (Universal Account Numbers)
- They can access EPF account for viewing monthly deposits through the passbook option
- They also view your EPF account details available with EPFO.
How to activate UAN on EPFO Mobile App?
If you have not activated the UAN then you can do it through the Mobile App. The process is similar to activating UAN on Desktop which is covered in our article UAN or Universal Account Number and Registration of UAN. First Get your UAN number. Visit http://uanmembers.epfoservices.in/ and click on the Know your UAN Status blinking on the top left corner.
In the Mobile App
- Select Member. You will see two options Activate UAN and Balance/Passbook.
- Select Activate UAN.
- Enter details such as Establishment Code, Extn(000), Employee Number and UAN and your Mobile number. Establishment Code and Employee number are from the PF Number or Member ID , which is usually available in the payslip issued by the employer. If any details are missing, you need to contact your employer.
- Check on the Declare above details pertain to me and are correct situated below the UAN activation form.
- Click Activate
How to check Balance / Download Passbook through EPFO Mobile App?
In the Mobile App
- Select Member. You will see two options Activate UAN and Balance/Passbook.
- Select Balance/Passbook.
- Enter 12 digit UAN number
- Enter Mobile Number tied to your UAN account.
The details are as shown in image below. By Clicking View Passbook you can see the passbook.
EPF pensioners and EPFO Mobile App
Pensioners can access their pension disbursement details through the mobile App. In the EPFO Mobile App
- Select Pensioner.
- Enter PPO number and Date of Birth.
- Click Submit.
Employers and EPFO Mobile App
Employers can check EPF deposit or remittances status through EPFO Mobile App.
In the EPFO Mobile App
- Select Employer.
- In TRRN Status, enter the 13 digits TRRN (Temporary Return Reference Number)
- Click Show Status
- UAN or Universal Account Number and Registration of UAN
- FAQ on UAN number and Change of Job
- Salary, Net Salary, Gross Salary, Cost to Company: What is the difference
- How to get information about EPF balance : Annual Statement, SMS, E-Passbook
- Tax on EPF withdrawal
EPFO has launched a mobile application App and other phone-based services to access PF account details for its subscribers. EPFO has been upgrading itself on technology front to access the EPF account access and transfer of EPF account. The new EPF Mobile App, SMS Based service and Missed Call are other initiatives to let people access there EPF details. Did you use EPFO Mobile App? Did you use EPFO SMS Service? Did you use EPFO Missed Call service?How was the experience?
The Reserve Bank of India (RBI) cut the repo rate by 50 basis points in its fourth bi-monthly policy review held on 29 Sep 2015.From opening deep in the red, key equity indices staged a marked recovery on back of an unexpectedly high interest rate cut by the Reserve Bank of India. The Indian equity markets closed 162 points up. An easing of key lending rates is expected to restore investors’ confidence, prop up sales of interest in sensitive sectors like auto-mobile, capital goods and real estate. What are the factors that affect the stock market or atleast the media related to stock market. Every time the event approaches financial media goes into overdrive, will Rate cuts happen? How will fiscal deficit be controlled? The inflation numbers?
- WHY IT IS IMPORTANT: RBI raises or cuts the interest rates,talks about the growth forecast,inflation.
- FREQUENCY: Every 2 months. RBI conducts the Bimonthly meeting overview of which can be found at RBI’s webpage https://rbi.org.in/scripts/Annualpolicy.aspx .
Monetary policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by its control over interest rates in order to maintain price stability and achieve high economic growth. In India, the central monetary authority is the Reserve Bank of India (RBI)
The key policy or signalling rates include the bank rate, the repo rate, the reverse repo rate, the cash reserve ratio (CRR) and the statutory liquidity ratio (SLR). RBI increases its key policy rates when there is greater volume of money in the economy. In other words, when too much money is chasing the same or lesser quantity of goods and services. Conversely, when there is a liquidity crunch or recession, RBI would lower its key policy rates to inject more money into the economic system.
What is repo rate? Repo rate, or repurchase rate, is the rate at which RBI lends to banks for short periods. This is done by RBI buying government bonds from banks with an agreement to sell them back at a fixed rate. If the RBI wants to make it more expensive for banks to borrow money, it increases the repo rate. Similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo rate. The current repo rate is 5.50%.
What is reverse repo rate? Reverse repo rate is the rate of interest at which the RBI borrows funds from other banks in the short term. Like the repo, this is done by RBI selling government bonds to banks with the commitment to buy them back at a future date. The banks use the reverse repo facility to deposit their short-term excess funds with the RBI and earn interest on it. RBI can reduce liquidity in the banking system by increasing the rate at which it borrows from banks. Hiking the repo and reverse repo rate ends up reducing the liquidity and pushes up interest rates.
How many people in India would think about running 5 km, 10 km, 21 km or 42.2 km for fun? Apparently quite a few. For a long time, the health conscious in India focused on walking, yoga, gym. Today, amateur running is seeing a boom. Nearly every city is hosting an event named after it and runner groups are mushrooming. The Standard Chartered Mumbai Marathon is now more than 10 years old and has seen registrations increase from year to year, drawing international athletes too.
Marathons in India
The first major running event was held in 2004, the Standard Chartered Mumbai Marathon, Pune led way back in 1983. In 2015 we have nearly 150 running events across the country. India currently boasts of at least six world class marathons held in the cities of Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad, with the SCMM, Airtel Hyderabad Marathon, TCS 10K Run Bangalore and Airtel Delhi Half Marathon being the bigger names. In 2009, the Delhi Half Marathon attracted 29,000 runners and in 2014 the number rose to around 32,500. The other events across India have seen similar increase in participation each year.
While city marathons continue to grow, another breed of running events have begun to emerge in the country and runners seem to be lapping up all the action. Players like Runners for Life, Globeracers have revamped the running scene in India with off beat events. Today, the calendar for running events includes the Run of Kutch, Himalayan Crossing, Mizoram Ultra, Nilgiris 100, Kaveri Trail Marathon, Satara Marathon, La Ultra- The High (Ladakh) etc. and young adventure and fitness enthusiasts from various cities have been jumping at the opportunity to run on difficult terrains with scenic beauty.
Why is Marathon called Marathon?
The marathon is a long-distance running event with an official distance of 42.195 kilometres (26 miles and 385 yards). The name Marathon comes from the fable run of Pheidippides, a messenger from the Battle of Marathon to Athens. On a hot summer’s day in 490 BC the he ran 26 hilly miles from Marathon to Athens to deliver the news that the Athenian Army defeated the Persians. Totally exhausted, he died after the good news reached the city.
All employees who join the Employees’ Provident Fund are covered by the EDLI or Employee’s Deposit Linked Insurance Scheme, 1976. EDLI provides a lump sum payment to the insured’s nominated beneficiary in the event of death due to natural causes, illness or accident. What is Employee Deposit Linked Insurance Scheme? What kind of insurance does EDLI provide? How much is the claim amount? Are there alternatives of EDLI? How can one claim from EDLI?
What is EDLI?
EDLI or Employee’s Deposit Linked Insurance Scheme provides a lump sum payment to the insured’s nominated beneficiary in the event of death due to natural causes, illness or accident. All employers to whom the Employee’s Provident Fund and Miscellaneous Provision Act , 1952 applies, have a Statutory liability to subscribe to EDLI to provide for the benefit of Life insurance to all their employees.EPFO has an active subscriber base of more than 45 million and it directly manages a corpus of more than Rs 6 lakh crore. Additionally, more than Rs 2 trillion is managed by exempted establishments or organisations that manage their PF money under EPFO’s overarching guidance. A total of Rs 697.7 crore was contributed under the scheme in FY 14 and claims worth Rs 152.6 crore were settled. Employee Deposit linked insurance scheme is a comprehensive group term insurance.
- Every employee who is the member of Provident fund gets covered under EDLI.
- The coverage is for 24 hours.
- Employee can be anywhere. Being at the workplace is not necessary.
- It covers the death of employee irrespective of the cause. There are no exclusions under this policy.
- The coverage and premium is same for every employee irrespective of Age or gender or other factor.
- The insurance coverage is linked to the pay of the employee, basic + dearness allowance, with the upper limit of Rs 15,000.
- There is no minimum limit of service to avail the EDLI benefit.
The EPF & MP Act, 1952 provided for PF and a family pension scheme for employees from 1971 onwards. However, it was felt that problems arising out of early death of the employee were left un-addressed. So the Act was amended to incorporate an insurance scheme, called the Employees’ Deposit Linked Insurance or EDLI Scheme in 1976. The objective of EDLI was to put in place a mechanism to provide employees families with income security after the death of the member, while the employee is in service. EDLI scheme provides for a lump sum payment to the insured’s nominated beneficiary in the event of death due to natural causes, illness or accident.
How much insurance cover does one get under Employee Deposit Linked Insurance Scheme?