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. 😡😡😡
From India, Madras
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1One 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. 😡😡😡
From India, Madras
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How can the cheque bounce which was meant for depositing? Rathnam Manne. (Life’s Gud)
From India, Bangalore
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From India, Bangalore
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Its Impossible what you tell & no one can believe this type of things. This seems that this type of error has been created for malfunctiong, or it may be error of Bank. Please go to bank & verify it.
From India, Surat
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From India, Surat
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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.
From India, Madras
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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.
From India, Madras
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Sorry arpu82 PF authority never sent cheque to employees, but the said cheque is directly send to your employes given bank & its address. So I think it must be error created by Bank Only.
From India, Surat
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From India, Surat
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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.
From India, Hyderabad
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From India, Hyderabad
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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.
From India, Madras
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From India, Madras
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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.
From India, Mumbai
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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.
From India, Mumbai
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It is highly improbable. There could be some other reason for cheque bouncing like signature mismatch or other error committed by the bank. Regards, Kamal Nayyar
From India, Thana
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From India, Thana
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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.
From India
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From India
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This is not a error this is a big mistake and it is a legal issue. If pf check bounce it will create a big issue. how dare they did like this anyhow i cant believe this post.
From India
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From India
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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?
From India, Madras
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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?
From India, Madras
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you should tell to pf official regarding this. ya i quite not possible clarify this bank also may be they are mistaken
From India, Panipat
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From India, Panipat
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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
From United Kingdom
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Rgds,
Anisha
From United Kingdom
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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.
From India, Vellore
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From India, Vellore
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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
From India, Bangalore
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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
From India, Bangalore
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Never allow such damaging information to be spread about the PF organisation. It is the only social security scheme that takes care of millions of working class people.
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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.
From India, Madras
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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.
From India, Madras
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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.
From India, New Delhi
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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.
From India, New Delhi
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It is not spreading a wrong word about the authority but I personally have faced this problem. And I have found out that there is a problem from bank as well as PF dept.'s end.
From United Kingdom
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From United Kingdom
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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.
From India, Lucknow
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From India, Lucknow
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PF Transfer Request Letter - FOR RPF Office.doc
HC All - Trainees not covered for PF -2010.pdf