EPFO Update – The Employees’ Provident Fund Organisation (EPFO) periodically makes significant changes for PF members. The EPFO has now established a rule allowing 100% withdrawal of funds, excluding the minimum balance, in case of an emergency. The EPFO’s Central Board of Trustees met to establish significant rules regarding partial withdrawals.
The approval of up to 100% withdrawals from provident fund accounts has been announced. The new rules also remove the restriction on the three-fold partial withdrawal period. EPF members can withdraw funds from their provident fund accounts as needed.
The CBT also approved a collaboration with India Post Payments Bank to provide digital life certificate services to EPS 95 pensioners at their doorsteps. Furthermore, the EPFO also won hearts by approving the third phase of services, Digital Modernisation 3.0. In the coming days, procedures for PF members will become significantly simpler.
Withdrawals will require this process.
According to the new EPFO rules, applications can now be made without any reason. EPF members will be required to maintain a minimum balance of 25% of their contributions in their accounts at all times. This will result in a higher interest rate, currently 8.25% per annum. The CBT Board has also extended the period for availing the benefit of premature final EPF withdrawal by two months.
EPFO has further extended the period to 12 months, or one year. Additionally, the pension settlement period has been extended from two months to three years. Liberalising partial withdrawals will allow members to meet immediate needs without compromising their retirement savings or pension benefits.
ATM facility to be launched soon
The government may significantly simplify withdrawals for PF employees by January 2026. It is believed that the government will be able to launch ATM withdrawals in January. This will alleviate the shortage faced by PF employees. It is hoped that this government-mandated system will provide significant benefits to employees.