Introduction: Major update on EPFO withdrawals
There is much more flexibility for the account holders as the EPFO has revised many of the withdrawal frequencies recently. The new rules as regard withdrawal raise the limit and decrease the time people await for their money when they have emergencies.
New ₹1 Lakh Withdrawal Limit
As per the new norms, EPFO subscribers have been allowed to withdraw more money from their PF accounts, and that too independently: the amount allowed is upto ₹ 1 lakh, up from ₹ 50,000 earlier. This change has a purpose of enabling employees to borrow more money whenever they are in need say during an emergency, Education expense.
Shortened time taken for withdrawals
The EPFO has also reduced the duration after which an incapacitated employee can make a withdrawal. Earlier, employees were able to use their pay check immediately on joining any organisation. Now, account holders can start withdraw their funds after only six months of signing up, which of course means it takes a lot less time.
Simplified Digital Process for Withdrawals
To add further convenience, the EPFO has taken an online process for issues related to filing and tracking of withdrawal claims. This will enable employees to carry out their respective accounts, or monitor their withdrawals from their comfort of their homes.
How to withdraw money from PF account
By employing the new process, withdrawal from the PF account is easier compared to previous systems. Follow these steps:
1. Visit the EPFO member e-service website by entering your UAN and password.
2. Click on the ‘Online Services’ tab and choose the claim form.
3. Recheck your particulars and select Form 31 partial withdrawal.
4. Complete your claim and finalize it by receiving the OTP to your mobile number.
5. This can be done under the ‘Track Claim Status’ link that is provided on the website.
Other advantage and rate of interest
In addition to the raise of the withdrawal limit, the EPFO provides for an interest rate of 8.25 % for the 2024 financial year which will benefits the employees as our investment return. EPFO looks after several welfare schemes offered to its employees such as provident fund, pension fund, and insurance so as to provide optimum financial security to its employees.