EPFO has changed the rules for withdrawing money. Its 30 crore subscribers will benefit from this. Changes in the withdrawal rules have been approved in the Central Board of Trustees (CBT) meeting on 13 October. CBT takes major decisions related to EPFO. What has changed in the withdrawal rules? How will this benefit the crores of people working in the private sector? Let us know the answers to these questions.
Only three conditions for withdrawal in new rules
First, EPFO Has changed the old terms of withdrawal. Earlier, there were many such conditions including treatment, education, marriage, which were used by EPFO subscribers to withdraw the money deposited in EPF. Now only three conditions have been set in their place. These include Essential Needs, Housing Needs and Special Circumstances.
It won’t take much time to withdraw money
Experts say that earlier there was a lot of confusion due to many conditions for withdrawal. Due to this, there was a lot of delay in the approval of withdrawal applications of subscribers. Many times his application was rejected. This problem is expected to end after the change in rules. Crores of subscribers of EPFO will be able to withdraw the money deposited in their EPF account if needed. This won’t take much time. Also, the entire process will be more transparent than before.
Permission to withdraw 75% of the money deposited in the account
The second major change is related to the withdrawal limit. This means that the maximum amount that EPFO subscribers can withdraw from the money deposited in their EPF account. The new rule allows subscribers to withdraw 100 percent of the money from their EPF account. This includes the contribution of both the employee and the employer. However, in the interest of the employee, it has been decided that the employee will have to maintain at least 25 percent balance in his EPF account. This means that the subscriber will be able to withdraw 75 percent of the money deposited in his EPF account.
Only 12 months service period will be required for withdrawal.
Third, service requirements have also been simplified. Earlier, to withdraw money from EPF account, a service period of several years was required. In the new rules, the service period for all types of withdrawals has been reduced to only 12 months. Earlier, a service period of 7 years was required for withdrawals related to marriage and a service period of 5 years was required for withdrawals for purchasing a house. Experts say that due to the new rules, the employee will not have to wait for many years for withdrawal.
No reason to be given for withdrawing money, no documents required
The ‘Special Circumstances’ condition that has been included for withdrawal will greatly benefit the subscribers. Experts say that under this condition it will not be necessary for the employee to tell for which work he wants to withdraw the money. Earlier, special situations included natural disaster, unemployment and other types of emergencies. The subscriber had to submit documents as proof. Because of this the process took a lot of time. Now you will not have to submit any kind of documents.
Withdrawal limit increased for marriage and education
The limit for withdrawing money for marriage and education has been increased. Now subscribers can withdraw 10 times for education and 5 times for marriage. Earlier only a total of three withdrawals were allowed. The timeline for pre-mature final settlement and pension withdrawal has also been amended.
You will have to apply for settlement 12 months after leaving the job.
This means that now subscribers can apply for PF settlement after 12 months of leaving the job. He can apply for pension withdrawal after 36 months. Earlier the subscriber could apply after 2 months of leaving the job. This means that the new rule has become stricter than before.