EPFO: Interest Payment of 6 Million Subscribers Stuck due to Glitch

At least 6 million, or 10-12%, of Employee Provident Fund Organisation's (EPFO) subscribers will have to wait longer for their 2019-20 interest payment, as inaccuracies in the data of individual subscribers have held up fund transfers to many establishments, reports The Economic Times.
The EPFO had started crediting interest at 8.5% for 2019-20 at the beginning of the new calendar year and so far funds have been transferred to more than 50 million accounts. EPFO has a subscriber base of about 60 million. Usually the process is completed within a week’s time.
Top government sources told ET that the process would take another month or so and the EPFO is expected to credit interest to all subscribers by the end of the current fiscal year. 
Every year, the EPFO credits interest on establishment basis and not on individual basis. If the details of even one employee in the establishment do not match, payments to the entire establishment get stuck resulting in delays. This year, this glitch has impacted a considerable number of establishments.
The EPFO is now working on a software upgrade to fix the problem.
The EPFO will shortly announce the interest earned on PF deposits for 2020-21 and the same will be credited only towards the end of the next fiscal year.
The interest rate of 8.5% for 2019-20 was the lowest in seven years – the same rate was last offered in 2012-13.



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Changes in Our Business Model
25th Sept 2020
Greetings from Moneylife Advisory Services
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
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Over the next few weeks our site and our communication to you will reflect these and other additional changes.
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