Govt plans PF full withdrawal option every 10 years
In the new rules, every 10 years employees will be able to take out a large part of their PF.
Salarid employees will soon be able to withdraw all money or large part of it from their PF retirement fund before retirement. The central government is planning to make major changes in the PF withdrawal rules.
According to the report of Money Control, after the new rules are implemented, every 10 years employees will be able to take out a large part of their PF. In the current rules, the entire money of EPF can be withdrawn only after retirement or being unemployed for 2 months.
You will be able to remove a large part of PF every 10 years
If the new proposal is implemented, then you can remove a large part of your PF retirement fund (potential 60% or more) once every 10 years, so that people will be able to use PF funds for big needs even 30, 40 years of their own or even in intermediate stops of the job.
The government is churning on putting the entire money to withdraw all the money or a limit. For example, withdrawal of up to 60% can be allowed every 10 years.
Now you can withdraw the full amount on retirement
According to the current rules, retirement funds can be removed only after the age of 58 or unemployment of 2 months.
You can withdraw limited amount in special circumstances (medical, home purchase, studies, marriage). Apart from this, after three years of EPF membership, you can withdraw money up to 90% to build a house.
Employees will be able to remove up to ₹ 5 lakh in 72 hours
Last month, the government had allowed the PF account to withdraw up to ₹ 5 lakh in 72 hours in the time of emergency or requirement. Earlier this limit was ₹ 1 lakh. Union Minister Mansukh Mandavia gave information about this on 24 June.
Earlier, Sumita Davra, Secretary, Ministry of Labor and Employment, passed the proposal in the 113rd meeting of the EPFO’s Executive Committee (EC) held in Srinagar on March 28.
Software will process full, officers will not need
- In auto settlement, the PF withdrawal claim is automatically processed by the system. There will be no less or less need for the intervention of officers.
- If your UAN (Universal Account Number) is link to Aadhaar, PAN and bank account, and KYC is fully updated, the system checks your claim.
- This process is faster because it is completely online and based on the IT system. The claim in auto settlement is processed in 3-4 days.
- EPFO has introduced auto settlement facility for certain types of claims (such as medical, education, marriage, or houses to build/buy).
Manual settlement takes 15-30 days
- In this, the PF claim is set by EPFO employees. The process takes 15-30 days.
- For this, online or offline form (eg Form 19, 31, 10C) is to be filled.
- EPFO employees then check your documents, KYC, and eligibility.
- If the exit date is not updated or any document is low, the claim may be delayed.
- Large or complex claims (such as retirement or final settlements) often have manual examination.
Soon PF’s money will be withdrawn from UPI-Atm
According to media reports, under the draft of EPFO 3.0, employees may soon get the facility to withdraw PF money directly from ATM and UPI.
In this, PF account holders will be given withdrawal cards. This bank will be like ATM card. Only one fixed amount can be withdrawn under the new facility.
At the same time, to withdraw money from UPI, PF account will have to be linked to UPI. After this, subscribers will be able to transfer PF money to their bank account.
75% money of PF will be withdrawn after one month after going to the job
If a member’s job goes away, he can withdraw 75% money from PF account after 1 month. With this, he can meet his needs during unemployment. The remaining 25% stake in PF can be extracted two months after leaving the job.
