To start this facility, EPFO is going to consult with RBI and major banks, so that how this system can be established. A roadmap can be prepared on this.
If you do a job, then obviously you have an EPF account. Your money is deposited in this account. In the coming time, now you will be able to approve the withdrawal of money from the PF account yourself. Actually, the Employees Provident Fund Organization (EPFO) can start the self-approval system at the beginning of the next financial year. According to the news of Financial Express, if any cash crisis arises for EPFO in this system, then it can take cash loan from commercial banks to meet temporary needs.
Total fund of EPF
According to the news, according to the data, by the end of FY 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 prepare a roadmap on how this system can be set up. According to the news, going forward, EPF subscribers will just inform the fund about their withdrawal amount, and not go through the tedious withdrawal process, which is currently common.
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 ATM 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. According to the current norms, customers can withdraw up to 50% from the PF fund for the purpose of education and marriage. For repayment of home loan, 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 the EPFO should be introduced, which can hold the processed claim amount and 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 ease processes and turn-around time for individual member and employer transactions. In FY 2025, the EPFO has introduced simplified IT processes for auto-mode processing of all EPF advance claims up to Rs 1 lakh.
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