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EPFO-Automatic Transfer Scheme Introduction and Features

According to the sources EPFO is introducing a new scheme of automatic transfer within 3 days. After the implementation of this scheme an employee will no longer have to transfer their Employee Provident Fund Account.


The Employees’ Provident Fund Organization (EPFO) is pondering over the option of introducing automatic EPF transfer if he / she change their job.

Contribution to the EPF Account – In EPF account, every salaried person contributes a certain portion from their salary to their EPF account along with the same amount of contribution by their employer. The contribution then compounds at a rate declared by the EPFO every year. At present, the rate of interest is 8.65% per annum.

Features of New EPFO Scheme i.e. Automatic Transfer Scheme

  1. Easy Hassle – Free process

The new automatic transfer scheme is going to be very convenient for the employees as the account will be transferred automatically which does not even required an application.

  1. Linking PF Account with Aadhaar

As Government of India has mandated the 12 digit Aadhaar card to be linked with almost every other document, this linkage can save your PF account from duplicity. Also, in order to register with the unique identity number, the transfer of an employee’s account is simpler.

Though Government have declared in Aadhaar Privacy Case that “privacy is a fundamental right”, it is yet to see if it effects on linking Aadhaar with PF.

To know more about the Aadhaar Privacy Case read: Verdict of Aadhaar and Right to Privacy Case https://rupeenomics.com/verdict-aadhaar-right-privacy-case/

  1. Tracing Old Accounts

As there were lot of errors at the administration level, the employees mostly choose to withdraw their PF account.

It was also made it clear by the Employees Provident Fund Organization that an employee can withdraw their PF account only if they are unemployed for three – months or if they are retiring.

However, the authorities have introduced Universal account Number (UAN) which will find a way for the unclaimed PF accounts as the process is being worked upon to be less tedious.

UAN was introduced by the EPFO for a quick and hassle free transfer of PF accounts. With the introduction of the Universal Account Number an employee can simply transfer their PF account from one organization to another by providing the UAN number to the new employer.

To read on UAN activation you can also read: How to activate your UAN

ULIP Vs ELSS- The Tax-Saving Investment Schemes

In this highly productive generation, In India, the total amount of the Income Taxes can be somewhat reduced by investing smartly in the tax saving schemes. There is a various number of Tax Savings Schemes or Plans from which an individual can choose. These tax-saving options are provided by many Government and Private Organizations to the Indian Residents. There are multiple numbers of opportunities to reduce an individual’s tax burden, out of which the ULIP and the ELSS are one of the best tax-savings schemes introduced in India.

In this article, we are going to provide you a brief description of this schemes and compare the features and different qualities of these tax- saving schemes.

ULIP Saving Schemes

The ULIP stands for Unit Linked Insurance Plan. This is a product that is offered by the Insurance Companies, unlike the Insurance Policy it gives the investors both Insurance and Investment under a single integrated plan. It allows a maximum exemption of Rs 1 Lakh per year under the Section 80 C.

In short, ULIP is a life insurance product, which provides a risk cover to the policyholder along with the investment options to invest in different qualified investments such as stocks, bonds or mutual funds. This provides a dual benefit of Investment Opportunity along with the Insurance Coverage.

ELSS (Equity Linked Savings Schemes)

The ELSS stands for the Equity Linked Savings Schemes. These are the tax- saving mutual funds that can be used to reduce the taxable income by up to 1.5 Lakhs under the Section 80C of Income Tax Act 1961.

It is a type of diversified equity mutual fund and offers capital appreciation as well as tax benefits. It comes with a lock period of 3 years.

Differences between the ULIP and ELSS

People get confused often with these two products as both the schemes are tax-saving instruments.


The ULIP is an Insurance cum Investment product which is sold by the Insurance Companies. The ULIP Investors have an option to invest in equity, hybrid and money market funds. The minimum sum assured is 10 times the annual premium. It is seven times the annual premium if the age of entry is above 45 years.

Whereas the ELSS is an equity-linked saving scheme, these are the diversified equity funds that invest in stocks. These are pure investment schemes and they do not provide any insurance.

Charges and Transparency

The ELSS Funds have only one charge, which is called as the fund management fee or the expense ratio. This is around 3% and is adjusted in the Net Asset Value of the Scheme. This is not charged separately. Through this, you get to know that how much amount you have invested and you can also calculate the return, leading to a high transparency in the transaction process.

In ULIPs, almost 60% of the charges are incurred in the premium allocation charge, mortality charge, fund management fee, policy administration charge, fund switching charge and service tax deduction. The rest amount of the money is invested in the market. As the charges start reducing after 3-4 years, the investment and the returns will be very low.

For getting good returns you need to stay in an investment period of 10-15 years. The transparency is too low as you do not know the exact amount that is being invested. Also, there are some charges that are levied by reducing the units, not deducting from NAV, but further reducing the transparency.

Tax Deductions

Both the instruments are eligible for the tax deductions of up to Rs 1.5 Lakh under the Section. The ELSS scheme follows the EEE mode, wherein, the investment, capital gains and maturity amount are tax-free. These are because you are locked-in for 3 years, resulting in the long-term capital gains, which provides zero taxation for the equity investment.

In case of ULIPs, if you surrender before the lock-in period, any deduction claimed earlier is reversed as you have to pay tax. The maturity amount is tax-free only if in case of the death of the Policy Holder. But if the premium is more than 10% of the assured sum, then the maturity is added to the insured income and taxed at an applicable rate. If the premium is more than 10% of the assured sum then the proceeds for a year exceed Rs 1 Lakh and a tax of 2% is deducted from the source.

Lock-n Period

The ULIPs have a lock-in period of 5 years, whereas ELSS has a Lock-in period of 3 years. If you cannot quit the ULIP, then you can discontinue the premium. A discontinuance charge is levied and the funds (balance amount) are moved to the discontinuation fund.

In ELSS Funds, you cannot withdraw the amount before 3 years. It is not advisable to quit the ULIP or ELSS after the lock-in Period because the returns are more beneficial if the equity investment terms are for a longer period of time such as 7-10 years. For ULIPs, the ideal period is 10-15 years.

Switching Option

The ULIPs offers a switching option, which means that you can alter the ratio of the invested amount in different funds (equity, debt hybrid etc.) The scheme allows you to shift the funds on the basis of the risk exposure at different stages of life. So while you are young, you can have a higher amount of equity, but along with the age, you can switch the funds. You can also switch the funds if there is a decrement in the market.

In case of ELSS, there is no switching option. You are not allowed to touch the funds before the lock-in period. But you can opt for the dividend option to ensure the periodic booking of the profits.

Other Comparisons

Features ULIPs ELSS


It is an Insurance cum Investment Product  

A pure Investment product




This is an investment product that provides leverage to enjoy the investment benefits along with the tax relief along with the life coverage.  

A professionally managed fud that provides the benefits from the diversified equity investments.









Loyalty Additions


The Loyalty additions are applicable for staying invested through the policy term depending upon the policy terms and conditions  

There is no such loyalty additions applicable.

Risk High Risk, Capital and Return are not guaranteed but life coverage is guaranteed High Risk, returns depends on the performance of the broader markets and fund manager.

Thus, if you are looking for a short-term investment with a good growth option then ELSS is a good option. As the returns expected from the equity market is comparatively higher than that of the investment classes.

But if you wish to maintain an investment in order to meet your personal needs such as children education, marriage etc. then choosing ULIP is a good option. As the ULIP provides a long-term investment for a period of 12-15 years. It also provides an insurance coverage, which in result provides an overall security and protection. Hence while choosing a ULIP or an ELSS, one should always keep in mind about the Financial Goals and Investment objective.

Switching Job? No Need to File Separate EPF Transfer Claim

Under EPF (Employees Provident Fund), it is advisable to transfer PF accounts between organizations as and when employees change their jobs.

Earlier subscribers had to file separate EPF transfer claims which is Form 13 (For transferring PF / pension between different accounts) regarding the same.

However, EPFO (Employees Provident Fund Organization) has declared that the subscribers no longer have to file separate EPF transfer claims using Form -13 as it will now be done automatically.

Although, at the time of joining, the employees are required to provide details of the previous EPF account in new composite F-11 form (which is a declaration form by a person taking up employment in any establishment on which EPF scheme is applicable). And after that funds will be automatically transferred by the EPFO to new EPF account.

An official of EPFO also said that they are deciding upon providing Aadhaar card and bank accounts of the employees along with to use new F – 11 composite form.

Also, note that recently EPFO (Employees Provident Fund Organization) have mandated linking Aadhaar number with the EPF account after Government made Aadhaar mandatory for all the other official documents. This linkage will also help to avail subsidized scheme easily where the subsidized amount will be transferred directly into the account.

To know more about the linkage between Aadhaar card and EPF account read

So, the Composite declaration form (F – 11) is replacing form 13 (For transferring PF/pension between different accounts) which is decided by the EPFO.

EPFO (Employees Provident Fund Organization) which works under the Ministry of Labor and Employment has also introduced an online portal where a subscriber can check EPF claim status online as well. And this process is easy and hasslefree. And only an EPF member or subscriber can make a withdrawal claim.

How to Redeem HDFC Debit Card Points – Details

These days, consumers are widely using Debit cards instead of using Cash and Checks, because they are convenient and easy to use. Similarly, the HDFC Bank Debit Cards are one of the most highly used Debit Card out of all the various debit cards that are available in the market. The HDFC Bank Debit Card offers a lot of benefits and comes up with new features. It offers rewards across five categories to meet your daily needs. The reward system allows you to earn up to 2000 Reward Points in a month. In this article, we will guide you how to redeem HDFC Debit Card Points easily and what are various benefits that are offered by the HDFC Debit Card.

How to Redeem HDFC Debit Card Points

To redeem the HDFC Debit Card Points, you need to have your HDFC Net Banking Account. The procedure is simple and easy to use. The step by step procedure to redeem the HDFC Debit Card Points is as follows-

  1. Login to HDFC Net Banking Portal using your Login Credentials.

  2. Click on the Cards Tab in the upper row.

  3. Then click on the “Enquire Tab” in the Debit Card Selection, just below the Credit Card Section.

  4. Click on the Cashback Enquiry and Redemption.

  5. Select the Account Number for which you want to redeem the points.

There are basically two types of Cashback one is the Debit Card Promotional Cash backs which have no redemption limit required. So you redeem every single point whereas, the 1.0% Cashback for spends needs a minimum 250 points accrued to redeem them to your account. Each point is equal to Re 1/-.

How to Check HDFC Debit Card Reward Points

To get the reward points, it’s quite simple. Whenever you use your HDFC Bank Rewards Debit Card at any of the partnership merchants, then you can avail up to 5% Savings. Each month you can collect up to 2000 HDFC Debit Card Reward Points. These Reward Points can be earned from your everyday spendings when your card in big brands. The Brands that have partnered with the HDFC Bank are- Big Bazaar (Grocery), BPCL (Fuel), Snapdeal (Online Shopping), Pay Zapp (All the payments is possible through this one app), IRCTC (Railway), Apollo Pharmacy (Pharmacy), Smart Buy (Online Shopping).

Features and Benefits of HDFC Bank Rewards Debit Card

The HDFC Bank Debit Card comes up with loads of benefits and features in various categories. Let’s have a look at it in details.

  1. Reward Points Program- You can avail up to 5% savings if you use HDFC Bank Rewards Debit Card at any of its partnership brands. Each month you can collect up to 2000 HDFC Debit Card reward points.

  2. You can earn reward points on your everyday spends when you swipe your card in bigger brand stores. Some of them are Big Bazaar, BPCL, IRCTC etc.

  3. The customers also get exclusive offers from Apollo Pharmacy (Merchants Discounts) and welcome vouchers are offered from eBay.in

  4. The Debit Card comes with Personal Accidental Death Cover worth Rs 5 Lakhs for the accidents happened on the Roads/Air/Rail. To keep this Personal Accident Insurance Cover active, the user has to use the Debit card once at least in 30 days.

Plus, if your International Air Tickets are booked using HDFC Bank Rewards Debit Card then you are eligible for International Air Coverage worth Rs 25 Lakhs.

  1. If there are any fraudulent transactions held on the Debit card, then a Zero-Liability Cover up to Rs 1 Lakh is included. It is only valid if the transaction took place at the Point of Sale. At least one purchase transaction should be made on the card within 30 days prior to the event date.

  2. The HDFC Bank also offers Zero Fuel Surcharge which means that you have saved while filling Fuel and pay using your HDFC Bank Reward Debit Card.

  3. The HDFC Bank Debit Card provides High Spending and Withdrawal Limits that means that you can enjoy Domestic shopping with a Limit of Rs 3.35 Lakhs. The Domestic Cash Withdrawal for this card is Rs 50, 000/-

Thus, the HDFC Bank Debit Card has innovative features so as make the customer’s life more convenient and super comfortable. One can easily redeem the HDFC Bank Card Points in order to make a purchase in different sectors.

Bank Savings Account – Types, Account Opening & Documents Required

A person who thinks about his/her future saves money for the future purpose. Saving money is a good habit. Future is uncertain for everyone. One has no idea what future lies for him/her. One should be penny-pinching in order to save money. Everyone should be economical when it comes to money. Rather than saving the money in the treasure box or chest, he should credit the money to the Bank Savings Account.

There’s a famous quote said by a famous author, politician and political theorist named Benjamin Franklin

Beware of the little expenses; a small leak will sink a great ship

The Government of India has introduced many saving schemes like Postal savings, Bank Cumulative Time Deposit, Defense Fund, National Savings Certificate, Life Insurance and much more. Many of them are adopting these schemes and people should take the advantage of these schemes provided. In this article, we are going to know about what exactly a bank savings account is, how does it perform and how to apply for it and what are the benefits of opening a bank savings account.

Firstly, What exactly do you understand by a Bank Account? A Bank Account is basically an arrangement or a set up created by the bank in order to deposit or withdraw cash with some paid interest reserved by the Bank. The Bank Account is classified is classified by different types of accounts which perform different activities

  • Savings Account
  • Current Account
  • Recurring Deposit Account
  • Fixed Deposit Account
  • Sweep Account

Savings Bank Account

A savings bank account is the simplest form of the Bank account that allows you to save a certain amount of cash anytime along with earning an interest on your money. Believe it or not, it’s the smartest way to save your savings. Cash kept in the savings account are less accessible. When you are conserving your money in the bank wallet it is adding up and earning interest in the savings account.

In other words, you are lending your money to the bank so that the bank in return offers you with different benefits and loans to the other customers and it is paying a little bit extra than your original amount.

There are a few types of savings account to choose according to your necessity.

Basic Savings Account

This type of account offers a low rate but keeps your money safe and secured and gives you a quick access in case of an emergency purpose.

The Money Market Account

This requires a higher minimum balance and in returns offers a better rate. This account might come with a debit card or cheque facility and has a limited transaction per month.

A Certificate of Deposit

This holds money for a fixed period of time. This savings account provides the highest annual percentage yield. The longer you freeze your cash in the account, the higher the interest rate. Withdrawing money before the end of the term can charge you with a penalty.

Pradhan Mantri Jan Dhan Yojana (PMJDY)

This is a National Money Saving Scheme or it’s a National Mission introduced by the Government of India to provide access to various financial services like availability of basic savings account, providing remittance facilities, insurance and providing pensions to the excluded sections of the society like the weaker sections and the low-income earning groups.

Current Account

A Current Account is basically known as the trading account. These accounts are mainly opened by those individuals and entities who focuses on business purposes like involving in the daily transactions, multiple payments, and receipts to the business firms, traders, entrepreneurs etc. The Current Account is the ideal solution for this purpose. Current account can be opened in the name of  the following

  • Individuals
  • Two or more individuals (Joint Account)
  • Partnership Firms
  • Proprietary Concerns
  • Hindu Undivided Family
  • Associations, Trusts, and Clubs
  • Private and Public Limited Companies
  • Government Departments, Boards, and Corporations etc.

Fixed Deposit Account

The Fixed Deposit Account is a type of account where the money is deposited for a certain period of time say it like- for six months/ one year/ five years/ ten years. The money once deposited cannot be withdrawn before the expiry of the time period.

Recurring Deposit Account

These are the type of account that is provided by the bank which is quite helpful for the people in terms of saving money. This deposit scheme helps the people with regular incomes to deposit a fixed amount every month and earn interest at the different rates provided by the bank. A delay in regular payments will result in the deduction of the interest payable at the maturity. They also provide the loan facility on the recurring deposits to their customers and can take up to 90% of the deposit value.

Sweep Accounts

The Sweep Accounts are the types of account that automatically transfers the amount that exceeds a given threshold to the fixed deposit account. Whenever the cash is needed the bank can just transfer and “sweep” in funds to the savings account.

NRI Savings Account

An NRI Savings Account that is opened in India will allow the account holder to safely deposit the funds that come from the foreign earnings. The funds that are deposited into the NRI Account are converted into INR  or Indian Currency. This activity of converting a foreign currency to Indian currency allows an NRI to maintain the foreign currency earnings in Indian Rupees. The funds that are collected as well as the interest earned on the NRI accounts are free from the tax and account holders can retreat the money anytime.

  • To apply for an NRI Bank you need to visit the official site of the bank where you want to open the account. An option of NRI  Bank Accounts is available with sub options like- Savings Account, Current Account, Deposits etc.
  • Choose the Savings options which directs you to apply online. When you click the option of “apply online” it redirects you to an application form page.
  • You need to fill in the application form and upload the scanned images of photograph and signature in a per-defined format and the required documents in the designated slots.
  • Upload or submit the documents required.
  • Your account will start functioning within two-four working days.

How To Open A Savings Bank Account (Online)

To open a Savings Bank Account online you need to follow the following steps

  • Research the banks with their interests offered. Compare their rates with your specific requirements and what benefits are they offering that will be best for you. If you have made a choice then open the bank website you wish to open your account.
  • Now log in to the official website of the bank which you have chosen to open an account. Many banks does not have the online applying facilities.
  • Fill out the online application form for the savings accounts that meet your needs and submit along with the identity documents and proofs, photographs, address copy, Aadhaar card, employment proof etc. Some banks may tell you to submit the physical documents which they will send it to the executive,
  • The details will be then verified by the bank’s back-end team and you can start using your account instantly.

How To Open A Savings Bank Account (Offline)

The process for opening a Savings Bank Account offline are

  • Research the banks with their interests offered. Compare their rates with your specific requirements and what benefits are they offering that will be best for you. If you have made a choice then open the bank website you wish to open your account.
  • Carry a copy of your identity proof like Aadhaar, PAN etc.. two photographs, address proof, income or employment proof (optional), age proof.
  • Go to the nearest bank branch where you want to open the account. The office clerk will hand over an application form which is basically an account opening form.
  • Fill in the given form with the required details and submit along with the copies of the documents to the clerk.
  • The clerk will submit the application for the processing. Your bank account will start functioning within 1-12 working days.

Eligibility Criteria For Opening A Savings Bank Account

In order to open a savings bank account in a Major Bank, one must satisfy the following criteria. The Eligibility Criteria required for opening a Savings Bank Account are

  • The Savings Bank Account can be opened by the Indian Residents, Non-Indian Residents (NRIs) and Foreign Nationals.
  • The banks will allow those whose age is 18+. The savings account can be opened for minors by their parents.
  • There are basically no restriction if one opens a savings account.

Documents Required For Opening A Bank Account

Before going to open a Savings Bank Account in a bank you need to gather up all the documents before heading up in a Bank

  • Proof of age and identity: Any recognized document that is issued by an authorized community or organization that defines your identity is called as identity proof. An individual who wishes to open an account must have either an Aadhaar Card, Driving License, PAN Card, Voter ID etc.
  • Photograph: An individual must carry at least 2 recent passport size photograph of his/her along with the application.
  • Proof of Address: Any authentic, registered document by an authorized organization which contains the address of the applicant. Example- Driving License, Aadhaar card, PAN card, Voter ID, Passport, Utility Bill etc.
  • Senior Citizen Card: For opening a Senior Citizen Account one must submit their age proof along with the application form.
  • Proof of Income: The applicant must submit their proof of income or employment.

Saving money is a very useful and important habit. Everyone must implement it for a better future and lifestyle. This habit must be encouraged among everyone. The Government has opened many saving schemes for the children, middle aged citizens, senior citizens as well as for the poor people like the labors, workers living in the country. Every citizen of the country must avail and take advantage of this provision.

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