Provident Fund Mistake: How Can I Quickly Fix a Wrong Account Transfer?

Seniors,

I am in a problem. Actually, in the Monthly Contribution Challan of Provident Fund, which is a Combined Challan of A/c No 1, 2, 10, I wrongly mentioned the code of the company. Now, when I realized that, I contacted the provident fund authorities. They said that your money has been transferred to some other account.

Now, what is the fastest and easiest way to get the money back to our account? Because, from talking to the PF department, I could understand that they are going to charge some money under the table.

Please advise at the earliest.

Thanks,
Rahul

Hi Rahul,

Pretty bad situation yaar,

1. Contact the PF authorities and find out to which account your money has been deposited.

2. Try to contact the concerned person. If they are ethical enough, they may return the money. Even if you pay something under the table, will it guarantee that the money be credited to your account? Unfortunately, the fault is on your part, so try to solve the situation in an amicable way.

Regards, Vasanth +91 97104 24214 B+ve, Always...

I am not a PF expert, but being a finance guy, this is what I think is logical to do:

See whether the cheque is cleared from your bank - usually, it takes time for clearance. Else, issue a stop payment advice immediately.

Otherwise, follow the steps below:

The first step is to find out the organization corresponding to the number you mentioned. Contact them and make them aware of the situation. Take a No Objection Certificate (NOC) in writing from them, mentioning that the check number is not theirs and they do not wish to take any credit for the same.

Meanwhile, apply to the PF office (remember to take an acknowledgment) mentioning the error and highlighting that the check was issued from your company's account.

Submit the NOC obtained from the other organization to the PF office (always under acknowledgment), either with the above letter or a separate covering letter referring to the original letter.

You may have to visit the PF office, understand how their flow of information is done, and which is the exact agency/department collating payments to respective accounts. You can then submit a copy of all correspondence to them as well for a faster turnaround.

Be persistent, and all the best.

P.S.: There could be an easier way if you contact a PF consultant.

Thank you for the valuable advice, everybody.

I visited the authorities today and was able to get the name of the organization whose account was credited.

The good thing was they themselves didn't know about this issue, and at the same time, they were depositing their amounts for the respective months. This information is for all others facing the same problem.

I forwarded a formal letter to the concerned authorities, mentioning the details of challan amounts, my cheque details, along with a copy of my bank statement.

I was asked to contact the EDP department, where they checked the double payment receipts of the other company for every month. In the application, they mentioned the reference number of their account clearance.

Then, I was asked to contact the cash department for further proceedings.

Initially, the cash department immediately refused to do anything, saying once the money is gone, they can't do anything. However, money is a significant matter. I offered them a small amount under the table, which prompted them to take immediate action and correct the accounts in the company.

Now it was the turn of the concerned clerk.

He mentioned that no accounts for the said month had already been reconciled, so it couldn't be done. Ultimately, he also received some reward and promised to credit the amount within two days.

Hope for the best now.

Thank you, everybody.

Rahul

Great, you seem greatly relieved now! Thank you for sharing your experience.

Learning from you - we have already started to put preventive controls to double-check all numbers on challans before submissions.

Hi,

Very interesting input. I came across a different issue from a fellow HR professional. Company staff have wrongly allocated PF numbers of left employees to new employees. This was not noticed for many years. When one of the employees submitted an application for withdrawing PF accumulation, the error came to the fore.

Can this forum shed some light on how to handle this issue?

GS

Hi Rahul,

Warm greetings!

Having gone through your correspondence, I observe the following:

1. The problem you faced is genuine, and PF officials seem to have accepted it.
2. It is sad to note that PF officials could do something positive only if there is an 'under-the-table dealing.'
3. If this is the solution others look for, then it is all the more grave a situation that in our country, even to have the correct thing done, we need to take the wrong route.
4. I wonder how many of us are willing to stand up against such corrupt government officials.
5. I understand that not only you, Rahul, but the entire nation faces such difficulties.

Thanks,
Franklyne :(

I 100% agree with you, Franklyn. This type of situation is a real challenge for HR people because if you don't get it corrected, you are at fault in the eyes of both the employer and employees. And if you wish to get it corrected, you may again become a victim, as you are demanding money to be paid under the table. The only way out in the long run is to prevent these kinds of situations because I don't see any change in the minds or behavior of government officials in the near future. Believe me, it was just a 5-minute game for which they exhausted my complete two days. Anyway, I have learned from my mistake and I request all others going through this topic to do the same because prevention is the best medicine.

Regards,
Rahul