The employees provident fund organization is transforming and launching a major digital upgrade in which member will be having the facility to directly withdraw PF funds through their UPI. According to union minister of labor and employment Mansukh Mandaviya, recently passed in statement that testing of UPI payment gateway has been completed. This new scheme will give benefit to the members, and the work will be done not within weeks but in minutes.
Here are the key changes that happened in employment provident fund. In case of auto settlement limit at first EPFO was 100000 now it has been made up to 5 lakhs, nearly 95% of the PF claims are now settle throw this settlement mechanism. The processing time has been faster than before as members can withdraw PF funds directly through UPI apps like Phone pe, GP Paytm, it has become just like a regular bank account. At first employer attestation was necessary but right now it is no more compulsory.
Another biggest update that has been made is members can withdraw up to 75% of PF balance just after 1 month of unemployment, PF can be withdrawn after the second month of job loss. Another thing is the new form 121 has replaced form 15 G and 15 h for tax declaration on PF withdrawals.
Here are some eligibilities for withdrawing PF. You have retired at the age of 58 you must be unemployed for two consecutive months you are permanently going abroad, you are female employee retiring during marriage.
In case if somebody want partial withdrawal then conditions are here. Medical emergency anytime no service minimum. Marriage after 7 years of service up to 50% of employees share. Education after 7 years of service up 50% of employees share. In case of home purchase or construction after 5 years of service if we talk about home loan repayment then after 10 years of service. Unemployment 75% withdrawal after one month of job loss pre-retirement partial withdrawal after attaining 54 years of age.
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Here are some prerequisites that are required before you apply for withdrawal. According to many experts PF claim rejections happens because of Miss matching KYC not because of eligibility issues. One need to have proper KYC Aadhar Card must be linked with KYC and UAN. PAN card must be linked to avoid 30% of deduction on early withdrawals. Bank account number is also required, and IFSC code must be correctly updated in EPFO records.
