PF Withdrawal New Rules: Many times, in times of emergency, people are unable to access their PF account despite having money in it. Even if they withdraw money, they must provide a valid reason. However, the government has now hinted at a major change in EPFO rules. According to a report by Zee Business, the new proposal allows PF withdrawals up to six times a year. Importantly, there’s no need to provide a reason for this. However, there’s a condition. Let’s learn the full report.
What changes will the new proposal bring?
According to the report, the proposed changes include the ability to withdraw PF up to six times a year, even without a reason. This will provide immediate relief to employees in emergencies, make cash flow management easier, and give them more control over their finances. However, one condition is that individuals cannot withdraw more than 50% of their PF balance. This limit has been set to ensure that their PF balance is not completely depleted and they have money saved for retirement.
What were the rules for withdrawing PF till now?
Till now, there were some mandatory rules for withdrawing PF. One could withdraw 50% of the PF balance for marriage, but for this, a minimum of 7 years of membership was required. There was also an option to withdraw 50% of the PF for studies, but the account should have completed 7 years. One could withdraw money from PF balance and EPS to buy or build a house, but for this, a minimum of 5 years of employment was required. In case of medical emergency, one could withdraw money as per need, there was no limit on this. In case of unemployment, one was allowed to withdraw 75% of the PF, but it was necessary to be unemployed for at least one month.
What other changes could be made to the EPFO system?
Apart from this, some other proposed changes to the EPFO system include making e-nomination mandatory to reduce claims for families, a feature like Passbook Lite to make it easier to check PF balances, and fast track settlement to speed up claim settlement.
