How to close Provident Fund Account

How to close Provident Fund Account?

Unlike the savings account, a Provident fund account cannot be operated at will. A Provident fund account is opened for the person by the organization once he or she starts working there as a mandate and money is deposited into it every month cumulatively from the employer and employee’s contributions. No withdrawals are allowed from it before a period of five years. And even if some is done that is given as loan is realized back. The only way one would be able to close a PF account is when the person is no longer in the job.

Under such a situation a duly filled up form from the employee is required with proper stamped attestation from the employer. It’s absolutely a mandate that the employer has to do the same. In case the employee finds getting that done from the employer then he may approach a notary public, a gazetted officer or a magistrate to get the attestation done on the PF account closure form.

Once the duly filled up form is submitted to the PF office they would take something like one month to three months to send the refund to the employer. The refund can either go to the employee’s nominated bank account or a cheque is delivered to him, along with the accrued interest on the savings in the Provident Fund account.

Other situations, like in case of a demise of the Provident fund account holder, the account is closed automatically by the PF office upon receipt of the intimation from the employer, and all the savings in the PF account along with the full interest accrued in it, is passed on the beneficiary nominated as the “Nominee” of the PF account by the original account holder at the time of opening the account.