The decision by the Employee Provident Fund Organisation (EPFO) to stop paying interest on accounts that have not been operated for 36 months or more is expected to cover 60 per cent of the accounts.
According to EPFO estimates, there were 30.5 million inoperative accounts across 120 offices. In all, the agency had 47.1 million subscribers at the end of March 2009, which is estimated to have increased during the last financial year. However, latest data on the total number of subscribers was not available.
In all, the agency estimated that Rs 15,416 crore was lying in inoperative accounts (see table).
While 85 per cent of the inoperative accounts have a balance of less than Rs 5,000, such accounts having less than Rs 1,000 are 51 per cent. The balance in some of these are as low as Rs 1 or Rs 2, but maintaining these accounts cost around Rs 100. EPFO said over 11 per cent of the inoperative accounts had less than Rs 100.
The low balance in inoperative accounts was the result of subscribers giving up on their jobs, while the ones with more funds may have been the result of members chosing to leave the balance and opting to open a new account while switching jobs.
The decision by the Employee Provident Fund Organisation (EPFO) to stop paying interest on accounts that have not been operated for 36 months or more is expected to cover 60 per cent of the accounts.According to EPFO estimates, there were 30.5 million inoperative accounts across 120 offices. In all, the agency had 47.1 million subscribers at the end of March 2009, which is estimated to have increased during the last financial year. However, latest data on the total number of subscribers was not available.In all, the agency estimated that Rs 15,416 crore was lying in inoperative accounts (see table). While 85 per cent of the inoperative accounts have a balance of less than Rs 5,000, such accounts having less than Rs 1,000 are 51 per cent. The balance in some of these are as low as Rs 1 or Rs 2, but maintaining these accounts cost around Rs 100. EPFO said over 11 per cent of the inoperative accounts had less than Rs 100.The low balance in inoperative accounts was the result of subscribers giving up on their jobs, while the ones with more funds may have been the result of members chosing to leave the balance and opting to open a new account while switching jobs.
OTHER DECISIONS
The government approved the introduction of the Multi-State Cooperative Societies (Amendment) Bill, which is aimed at improving the accountability of cooperatives, in Parliament.
A revival plan for the National Film Development Corporation with fresh infusion of Rs 3 crore was approved by the government. Besides, the outstanding government loan of Rs 19.77 crore, along with accumulated interest of Rs 8.63 crore on it, will be converted into equity.
With an estimated 170,000 pilgrims scheduled to go for Haj this year, Air India would coordinate air operations from 21 cities, Bhopal and Goa being added to the list of embarkation points. The arrangement was approved by the Cabinet on Thursday.
Agriculture insurance plan
The Cabinet Committee on Economic Affairs (CCEA) approved the Modified National Agricultural Insurance Scheme to make it more comprehensive and farmer friendly. The modified scheme aims at helping increased number of farmers in stabilising farm income at the time of crop failure on account of natural calamities.
The Ministry of Agriculture has been implementing the National Agricultural Insurance Scheme as a central sector scheme since the 1999-2000 Rabi season to insure the farming community against these risks.
CCEA also approved Rs 935 crore as the revised cost estimate for implementing the ‘E-Courts’ project. The cost approved earlier for the project in 2007 was Rs 441.8 crore. E-Courts is one of the mission mode projects of e-governance under the National e-Governance Plan.
