During the meeting of the Central Board of Trustees (CBT) chaired by Union Minister Mansukh Mandaviya, it was decided to simplify the current 13 complex withdrawal rules into just three clear categories
A Central Board of Trustees (CBT) meeting was chaired by Union Minister Mansukh Mandaviya on Monday. File Pic
In a major reform aimed at improving the ease of living for over 70 million account holders, the Employees’ Provident Fund Organisation (EPFO) has approved liberalised partial withdrawal rules, allowing up to 100 per cent withdrawal of the eligible provident fund balance, reported the PTI.
During the meeting of the Central Board of Trustees (CBT) chaired by Union Minister Mansukh Mandaviya, it was decided to simplify the current 13 complex withdrawal rules into just three clear categories - Essential Needs (like illness, education, marriage), Housing Needs, and Special Circumstances.
Key highlights include-
- Full withdrawal (100 per cent) of both employee and employer contributions allowed.
- Education withdrawals increased up to 10 times and marriage up to 5 times, up from the combined limit of 3.
- Minimum service requirement for partial withdrawals reduced to 12 months.
- Under “Special Circumstances”, members no longer need to specify reasons, reducing claim rejections.
- A minimum balance of 25 per cent must be retained to ensure long-term retirement savings.
- Documentation-free process aims for 100 per cent auto-settlement of claims.
The CBT also revised final settlement rules, reducing the waiting period for full EPF withdrawal to 12 months (from 2 months) and for final pension withdrawal to 36 months.
To ease litigation, EPFO introduced the ‘Vishwas Scheme’ for pending penalty cases under Section 14B. The scheme offers a flat 1 per cent monthly penalty, with reduced rates for shorter defaults. It covers pending and ongoing litigations, and will remain operational for 6 months, extendable by another 6.
Further, the board approved an MoU with India Post Payments Bank (IPPB) to provide doorstep Digital Life Certificate (DLC) services to EPS 1995 pensioners, free of charge. This move will help elderly pensioners in rural areas continue receiving pensions smoothly.
Under the EPFO 3.0 digital revamp, a new member-centric digital framework was approved. It will integrate core banking solutions, cloud-native tech, and API-first architecture to offer faster, automated claims, payroll-linked contributions, and self-service in multiple languages.
Four fund managers were selected for EPFO’s debt investment portfolio for a five-year term, ensuring safe and effective investment of retirement savings.
Minister Mandaviya also launched key digital initiatives aimed at making EPFO more efficient and user-friendly.
(with PTI inputs)
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
