New Delhi: In 4 months due to Coronavirus Pandemic, EPFO subscribers have withdrawn Rs 30,000 crore from their account. 80 lakh account holders of the Employees Provident Fund Organization (EPFO) have withdrawn such a huge amount within 4 months of the beginning of April. EPFO manages a fund of around Rs 10 lakh crore and has a subscriber base of around 6 crore. Regarding withdrawal, the department says that this will affect our earnings in the current financial year. The amount withdrawn by EPFO subscribers may be due to layoffs, salary deductions, and medical expenses.
Explain that in view of the lack of cash due to the corona virus epidemic, EPFO has given exemption to EPF account holders to withdraw a certain amount from their account. After the first phase of the nationwide lockdown was announced, it was announced by Finance Minister Nirmala Sitharaman. For this, the government had simplified the rules of EPFO, so that any person can withdraw from his account if needed. The term of this facility given by the government expired on 30 June 2020.
PF withdrawal rules?
According to the EPF rules, a member could withdraw 75% of the total amount deposited during the job, or three months basic salary and dearness allowance. Whatever amount of this would be minimum, it would have been allowed to withdraw them. If the person remains unemployed for more than two months, then he can withdraw the entire amount from the PF account.
The interest rate offered by EPFO on PF was 8.65 percent, which was reduced to 8.50 percent in March 2020.
