EPFO New Rule: The Employees’ Provident Fund Organization (EPFO) has given a good news for its members. Now first time home buyers can withdraw 90 percent of the amount for down payment. This will make buying a house easier now. They may also have to take less loan.
EPFO New Rule: The central government has recently made important changes in the Employees Provident Fund (EPF) rules. This will provide great relief to salaried class people in buying a house. If you are buying a house for the first time, you can withdraw up to 90 percent of the funds for down payment. Which will make it easier for people to buy a house. Experts believe that this change will boost the demand in the housing sector. However, it is advised to take decisions keeping in mind the safety of the retirement fund.
Under Para 68-PD of the EPF scheme, EPFO members will now be able to withdraw up to 90 percent of the funds from their PF account. However, this amount can be withdrawn only on the condition of buying a new house, construction work or paying house installments. This account should be at least 3 years old.
EPFO made important changes
Let us tell you that earlier this facility was available only when the account was at least 5 years old. Along with this, the withdrawal limit was also fixed. In this, only that much money could be withdrawn, whichever is less between the total contribution of 36 months and the cost of the property. Apart from this, if a member was involved in any housing scheme, then he could not withdraw money from PF. Para 68-BD, newly added in EPF Scheme 1952, has now removed all these conditions. This rule allows first time home buyers to avail this facility only once.
Many big changes related to PF withdrawal implemented
Apart from housing, EPFO has made many important reforms which are in the interest of employees.
Many big changes related to PF withdrawal implemented
Apart from housing, EPFO has made many important reforms which are in the interest of employees.
1. Withdrawal from UPI and ATM
Facility of instant withdrawal of up to Rs 1 lakh from PF is going to start. This will allow immediate withdrawal of funds in case of emergency.
2 – Auto settlement limit increased
Earlier claims up to Rs 1 lakh were automatically settled. Now this limit has been increased to Rs 5 lakh.
3 – Claim process simplified
While earlier document verification was done on 27 parameters, now the claim process will be done on only 18 points. In 95% of the cases, claim settlement is happening in 3-4 days.
4 – Withdrawal of money made easy
The process of withdrawing money for medical, education and marriage has been simplified. Due to which the liquidity of the employees has improved.
At present, these reforms of EPFO are being considered a big step towards making employees more financially independent. However, the PF amount is for security after retirement. Therefore, a careful decision should be taken before withdrawing it.
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