PF withdrawal rules and limits will not change, only the process will change.
If you work then obviously you have an EPF account. Your money is deposited in this account. In the coming time, you will now be able to approve withdrawal of money from your PF account. Actually, Employees’ Provident Fund Organization (EPFO) may start the self-approval system at the beginning of the next financial year. According to the news of Financial Express, under this system, if any cash crisis arises for EPFO, then it can take cash loan from commercial banks to meet the temporary needs.
EPF total fund
According to the news, according to the data, by the end of financial year 2024, the total fund of EPF was Rs 24.75 lakh crore. About 63 percent of this was invested in financial instruments like government securities, corporate bonds, exchange traded. To start this facility, EPFO is going to consult with RBI and major banks to find out how this system can be established. A roadmap can be prepared on this. According to the news, going forward EPF subscribers will just have to inform the fund about their withdrawal amount and not go through the tedious withdrawal process which is the norm at present.
Rules and limits will not change, only the process will change
According to Financial Express, Labor Minister Mansukh Mandaviya said that we want to make the process of withdrawal of claims through PF accounts as easy as possible. The idea of allowing customers to withdraw money through ATMs is also part of this process. It has also been told that the withdrawal rules and limits from PF will not change, only the process will change. As per the current norms, customers can withdraw up to 50% of PF funds for the purpose of education and marriage. For home loan repayment, the limit is 90 percent.
Also looking for a digital wallet linked to EPFO
The government is also exploring whether a digital wallet linked to EPFO should be introduced, which can hold the processed claim amount and can be used for withdrawals. The government is likely to launch the new EPFO Information Technology System 2.01 in the next two months, which will simplify the processes and turn-around time for individual member and employer transactions. In FY 2025, EPFO has introduced a simplified IT process for auto-mode processing of all EPF advance claims up to Rs 1 lakh.
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