The Central Board of Trustees (CBT) approved a significant amendment in paragraph 60 (2) (b) of the EPF Scheme, 1952. After the new provision, interest on EPF balance will be available till the date of settlement of EPF claim.
There is good news for millions of employed people. The Employees’ Provident Fund Organization i.e. EPFO has announced some relief to the Employees’ Provident Fund (EPF) members regarding the payment of interest on PF claim settlement.
The new EPFO rule will help EPF members to get more interest amount at the time of EPF claim settlement and faster claim settlement. According to the news of Economic Times, during the meeting of the Central Board of Trustees (CBT), the CBT approved an important amendment in paragraph 60 (2) (B) of the EPF Scheme, 1952.
What is the provision now and what will change
According to the current provisions, for claims settled by the 24th of the month, interest is paid only till the end of the previous month. Now, interest will be paid to the member till the date of settlement. This will benefit the members financially and reduce complaints. According to the news, till now, if the settlement was not done by the 24th of the month, there was further delay in settlement of the claim.
After this decision, now these claims will be processed throughout the month, which will reduce pending cases, timely settlement and optimal use of resources. This reflects EPFO’s commitment to efficient, transparent and member-centric service delivery.
What is the new rule on PF claim settlement?
According to the news, after the new provision, interest on EPF balance will be available till the date of settlement of EPF claim. Experts say that under the earlier rule, if a claim was settled by the 24th of the month, interest was paid only till the end of the previous month, causing members to lose interest for the days between the beginning of the current month and the settlement date. Now after the new amendment, interest will be available till the actual settlement date.
When will the new EPF claim settlement rule come into effect?
Experts say that it is worth noting that the official notification for amendment in paragraph 60(2)(B) has not been issued yet. The new rules for EPF claim settlement will come into effect only after the notification is issued by the government. That is, till then the existing/old rules for EPF interest payment will remain applicable.