PF withdrawal new rules: The Employees’ Provident Fund Organisation (EPFO) is set to simplify the rules for PF withdrawals. According to a report, members will now be allowed to withdraw PF funds up to six times a year without having to provide a reason. However, this will be subject to one condition. Read the full report.
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PF Withdrawal New Rules: Often, even when people have money in their PF accounts, they can’t access it during emergencies. Even if they are allowed to withdraw, they have to provide a valid reason. However, the government has now hinted at significant changes to EPFO rules. According to a report by G Business, the new proposal allows up to six PF withdrawals per year. The biggest advantage is that no reason will be required for these withdrawals. However, there is one condition. Let’s look at the complete report.
What changes are proposed?
According to the report, the proposed changes include allowing up to six PF withdrawals per year without any justification. This will provide employees with immediate relief during emergencies, make cash flow management easier, and give them greater control over their funds. However, one condition is that people cannot withdraw more than 50% of their PF balance. This limit is in place to ensure that the PF balance doesn’t deplete completely and that sufficient funds are saved for retirement.
What were the rules for withdrawing from the PF account so far?
Previously, there were certain mandatory rules for withdrawing from the PF account. For marriage, 50% of the PF balance could be withdrawn, but this required a minimum of 7 years of membership. Similarly, 50% of the PF balance could be withdrawn for education, but the account had to be at least 7 years old. For buying or building a house, funds could be withdrawn from both the PF and EPS accounts, but this required a minimum of 5 years of employment. In case of a medical emergency, funds could be withdrawn as needed, with no limit. In case of unemployment, 75% of the PF balance could be withdrawn, but the person had to have been unemployed for at least one month.
What other changes are being considered for the EPFO system?
In addition, some other changes are being proposed for the EPFO system, such as making e-nomination mandatory to avoid difficulties for the family during claim processing, introducing a “Passbook Lite” feature to make it easier to view PF balance, and implementing a fast-track settlement process to expedite claim processing.
