The Employees’ Provident Fund Organisation (EPFO) has made a big change. An important EPFO withdrawal rule has been changed and those looking to get some money under this rule will no longer be able to do so. The EPFO has moved in this direction as it was no longer a necessity. This rule was created in an emergency situation, but it was no longer required now. So, what is this EPF withdrawal rule that was at once one of the a most critically important ones for employees?
EPFO withdrawal rule was all about letting employees withdraw an advance amount from their EPF account under emergency conditions during the pandemic. In an announcement, the EPFO has said that it is withdrawing the advance facility. In a notification, EPFO said that its subscribers will no longer be getting the Covid-19 advance facility. Notably, this rule was allowed way back in March, 2020 when the Covid-19 pandemic was raging.
Notably, at that time, a huge number of people had lost their jobs and had no money to fund their day to day requirements. The government had stepped in then and allowed subscribers to withdraw the money and that too without imposing any tax on such EPF withdrawals. It provided a lifeline to many affected and desperate people.
Considering that the times have changed and the pandemic is not a concern currently, the EPFO has thought it best to withdraw this facility for its subscribers. In its notification, the EPFO said, ““As Covid-19 is no more a pandemic, the competent authority has decided to discontinue the said advance with immediate effect.”
Notably, considering this facility was found useful, it has laid the foundation and may well serve as an example of how to manage and provide access to money to subscribers in times of emergencies on a country-wide scale in India if the need so arises sometime in the future.
The critically important EPFO withdrawal rule has been scrapped. Know all about it here. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
