Employees’ Provident Fund (EPF) is an important social security scheme in India that provides financial security to millions of employees. Recently, the Employees’ Provident Fund Organization (EPFO) has implemented two new rules that have brought major relief to PF account holders. Under these rules, the process for employees to withdraw money from their PF account has been expedited and in some cases, up to ₹1 lakh is being claimed in just 3 days.
In this article we will learn about these new rules in detail and understand how they are beneficial for PF account holders. Also, we will also know whether it is really possible to get ₹1 lakh in 3 days and what is the process to be followed for this.
What is Employees Provident Fund (EPF)?
Employees’ Provident Fund (EPF) is a statutory scheme run by the Government of India to safeguard the future of employees. Under this scheme, both the employee and the employer deposit a certain percentage of their salary in the EPF account. This amount is received either as a lump sum or as pension at the time of employee’s retirement.
Brief description of EPF scheme
| Description | Information |
| name of the scheme | Employees Provident Fund (EPF) |
| year of implementation | 1952 |
| management | Employees Provident Fund Organization (EPFO) |
| beneficiary | Employees of organizations with 20 or more employees |
| employee contribution | 12% of basic salary |
| employer’s contribution | 12% of basic salary |
| Interest Rate (2023-24) | 8.15% per annum |
| Withdrawal eligibility | Retirement, unemployment, or special circumstances |
2 new rules implemented by EPFO
Recently, EPFO has implemented two important rules which are extremely beneficial for PF account holders:
1. Speed up online claim processing
EPFO has completely digitalized PF claim processing. Now all claims can be submitted online and their processing is also done through digital medium. This has reduced the claim processing time significantly.
key points:
- Online claim submission facility
- paperless processing
- Instant approval and payment
- minimal human intervention
2. Instant payment for Aadhaar-linked UAN
EPFO has made a special provision for account holders with Aadhaar-linked UAN (Universal Account Number). Under this, claims of such account holders are given priority and processed as soon as possible.
key points:
- Fast track processing for Aadhaar-linked UAN
- Ease of KYC verification
- Additional protection against fraud
- Instant Fund Transfer
Will you really get ₹1 lakh in 3 days?
The claim that one can get ₹1 lakh in 3 days may be a bit misleading. Although EPFO has expedited the process, the actual time depends on several factors:
- Claim Type: Partial Withdrawal or Full Withdrawal
- Account Status: KYC must be complete
- Employer Verification: Employer verification is required in some cases
- Bank Account Details: Correct and verified bank account details
- System functionality: Technical issues may cause delays
Process to withdraw money from PF
To withdraw money from PF, following steps have to be followed:
- Visit the official website of EPFO
- Login with your UAN and password
- Select ‘Claim (Form-31, 19, 10C & 10D)’ from ‘Online Services’
- Verify your KYC details
- Select claim type (partial withdrawal or full withdrawal)
- Enter the required amount and reason
- Confirm bank account details
- submit application
Eligibility Criteria for PF Withdrawal
To withdraw money from PF, certain conditions have to be fulfilled:
- Retirement: Complete withdrawal on completion of 58 years of age
- Unemployment: Partial withdrawal if unemployed for more than 2 months
- Marriage/Education/Medical: Partial Withdrawal in Special Circumstances
- Housing Loan: Partial withdrawal for purchasing or constructing a house
- Permanent Disability: Allowing full withdrawal
Impact of new rules
The new rules implemented by EPFO have had a positive impact on PF account holders:
- Accelerated Processing: Claim processing time is reduced
- Transparency: Online process has increased transparency
- Facility: Facility to submit claim sitting at home
- Fewer Mistakes: Digital Process Reduces Human Errors
- Better Tracking: Claim status can be tracked online
Tips for PF account management
Some important tips to better manage your PF account:
- Link UAN to Aadhaar: This speeds up the process
- Keep KYC updated: Keep correct and updated information
- Regular checking of passbook: Check your PF passbook regularly
- Use of Online Services: Avail EPFO’s online services
- Coordination with employer: Make sure your employer is depositing contributions regularly
future plans
EPFO is continuously improving its services. Some possible changes may occur in the future:
- Use of AI and ML: Use of Artificial Intelligence in Claim Processing
- Mobile App: Comprehensive mobile app for all services
- Real-time updates: Real-time updates of contributions and withdrawals to the account
- Cross-platform integration: Better integration with other government schemes
Important questions related to PF
Is it right to withdraw money from PF early?
PF is a long term savings plan. Unless absolutely necessary, one should avoid withdrawing money from PF. This could affect your retirement fund.
Is the interest received on PF taxable?
Yes, interest received on PF can be taxable. If the contribution deposited in PF in any financial year exceeds ₹2.5 lakh, then the interest received on it will be taxable.
Can PF account be transferred from one job to another?
Yes, PF account can be easily transferred from one job to another. This process can now be done completely online.
Disclaimer
This article is for informational purposes only. Although EPFO has made the processes simpler and faster, claims like “₹1 lakh in 3 days” may be exaggerated. Actual processing time depends on several factors. Before applying for PF withdrawal, visit the official website of EPFO to get the latest rules and procedures. Be sure to seek expert advice before taking any financial decisions.
