PF Cheque Returned Due To Insufficient Fund

Dear Friends,

One of our old employees has mailed us a letter regarding the settlement of his PF. His PF cheque was deposited into his account by the PF Authority, but the cheque was bounced due to "INSUFFICIENT FUND".

Is it possible? I mean how can this happen? Being such a big authority, how can they have insufficient funds?

Another employee's cheque was returned as it was not signed by the PF officials. It's really unbelievable. 😡😡😡

How can the check bounce, which was meant for depositing?

Rathnam Manne.

(Life's Good)

It's impossible what you tell, and no one can believe this type of thing. This seems like this error has been created by malfunctioning, or it may be an error of the bank. Please go to the bank and verify it.

PF Authority has sent the cheque to the employee, and when the employee deposited it, he was informed that the cheque bounced due to insufficient funds. Even the bank where the employee has an account has provided a letter mentioning the same.

I also do not believe the same. We have forwarded that letter to the PF Office, enclosing all the related documents. Let's see what the actual matter is.

Sorry arpu82, PF authority never sent a check to employees. Instead, the check is directly sent to your employees' designated bank and address. Therefore, I believe the error must have been created by the bank only.

PF Authority cannot make such types of mistakes. Insufficient funds also make it impossible. Anybody withdrawing the amount must undergo thorough cross-checking. If this really happened, you should file a civil suit in the consumer court or labor court.

We have already sent that to the PF office. It must be an error, maybe from the banker's side. Waiting for the PF office to revert back. It will take some time to identify the main cause of such discrepancy.

The most important thing is that these days the PF office takes bank account numbers and also ECS forms have started from the PF office so that the amount is directly credited to the employee's bank account.

Hence, the PF office sending a cheque is something which we need to think about. Further, even if the PF office has sent a cheque, they will do it only because they have to pay the amount, not because it has to bounce.

You have done the right thing as of now, but ask the employee to check with his banker as well. In all probabilities, it seems to be the banker's error.

It is highly improbable. There could be some other reasons for a cheque bouncing, such as a signature mismatch or another error committed by the bank.

Regards,

Kamal Nayyar

Yes, I agree with Mr. Arihant. It is impossible to never send a cheque directly; they will credit the PF amount to the employee's mentioned bank account. But a cheque bounce? I can't believe your employee is playing with you. Are you in the HR department? I think you are not. You said cheque bounce, then cheque returned. All these things are not acceptable because there is no chance to issue a cheque. You are new to statutory, that's why you are saying things like this.

This is not an error; this is a big mistake and it is a legal issue. If a check bounces, it will create a big issue. How dare they do this? Anyway, I can't believe this post.

Hey Friends!

Today, we just found out that there was an error from both the PF and the Bank's side. The PF Authority deposited the cheque into the employee's account without signing it. Additionally, the bank mentioned the reason for rejection as "insufficient funds" instead of no signature. It's really shocking... Is it a small error?

You should inform the PF official regarding this. Yes, it may not be possible to clarify this with the bank as they might be mistaken.

I am also facing the problem. The cheque was deposited directly by the PF office into my bank account. Last month, I received an SMS from my bank mentioning that the cheque had been dishonored because it exceeded the arrangement. The bank people asked me to redeposit the cheque, and to my surprise, this morning I found out that it has been dishonored again. I am not sure whether I will ever receive my PF amount or not.

Rgds,
Anisha

Whatever may be the outcome, advise the PF subscriber to file a case against the PF authorities under the Negotiable Instruments Act for the cheque bounce and another case under the Consumer Protection Act for deficiency of services.

Friends,

I have also come across such cases where the PF cheques bounce due to various reasons. Kindly do not get perturbed by such messages. It is not that the PF department has insufficient funds or anything else.

Remember, the PF authorities who sign the cheques sometimes sign more than 300 cheques a day, and in such cases, it is natural that the signature may differ. It is also true that the handwriting could vary.

What one has to do is go to the concerned PF office and get another cheque for the same amount. That is all.

Of course, some may feel very upset about this and may prefer to file a complaint with the Consumer Courts against the PF department to get the issue resolved.

Take care.

Regards

Never allow such damaging information to be spread about the PF organization. It is the only social security scheme that takes care of millions of working-class people.

Dear Vincent,

Yeah, you are correct. But it's not just my organization or my employees who suffered due to this; there are many. Being a member of CiteHR, you must have seen numerous queries and quotes related to employees' and employers' experiences, along with many suggestions by other members. Don't you think this is also a matter to discuss with the members?

It's not a matter of the status of the authority; it's about the services and benefits they are providing.

Dear All,

I have gone through all the comments. The employee who is saying that the PF cheque was returned due to insufficient funds is nothing but a mistake on the part of the employee. Either he has provided the wrong name or account number. It is impossible for the PF department to have no funds. Additionally, a cheque issued by the authority goes through three or four processes, so missing signatures of the authority is also not true.

Thirdly, if a cheque is returned due to the authority's signatures, it should be directly forwarded to the accounts section. Please check.

Thank you.

It is not spreading the wrong word about the authority, but I personally have faced this problem. I have found out that there is a problem from the bank as well as the PF department's end.

Yes, it's true that cheques do get rejected. This happened only yesterday with me for the second time. I am still to ascertain the exact reason for it; however, it has left a bad taste. I mean, it's my money, and how can the department be so callous in issuing cheques like this? I was issued 2 cheques: one got cleared, and the other got rejected (on the cheque return advice, the reason given is - "Kindly contact drawer/drawee bank and please send again"). What does it mean? Who is at fault? I mean, they issue 2 cheques, one gets cleared, while the other is returned. Ridiculous! I will try to talk to the EPF office and see what I have to do next; otherwise, I will see them in court.