EPFO Recent benefits for its subscribers

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EPFO Recent benefits for its subscribers

Category : Finance Issues

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The retirement corpus regulator EPFO (Employees’ Provident Fund Organisation) has recently  taken a lots of initiatives  to do away with the age old norms of EPF withdrawal and other introductory benefits.Really, this body putting in lots of efforts to bring in various changes so that the benefits can be passed on to its 4 crores subscribers. EPFO  has fixed the interest rate for F.Y 2016-17 as 8.65% which has already been approved by the Finance Ministry.Therefore, the corpus accumulated as on 31.03.2017 will fetch the subscribers a handsome return of 8.65% as compared to other fixed instruments products available in the market right now.

Some of the initiatives  recently taken by EPFO are mentioned below.

  • EPFO has recently declared a onetime loyalty  -cum -life benefits  up to ₹50,000/- at the time of retirement for its subscribers who have contributed to this fund for a minimum period of 20 years.Also, this benefit would be extended in case of any permanent disability to any subscriber who did not contribute more than 20 years;
  • The retirement fund body has amended scheme by introducing  a new paragraph 68-BD to the  Employees’ Provident Fund Schemee’ 1952.                                                 EPFO has recently allowed its subscribers to withdraw  up to 90% of accumulated corpus of own contributions from one’s EPF account to make downpayments for  purchase or construction of dwelling house or flats or for acquisition of sites. Though this withdrawal has got some conditions.The subscriber must be a member of co operative or housing society with at least 10 members.Such a member must have contributed to its EPF account for a period of not less than 3 years.This facility would be extended to a subscriber only once in its lifetime.Also the monthly EPF contribution can be used for payment of loan EMIs to Government,housing agency,primary lending agency and also banks;
  • The subscribers of EPFO can now withdraw funds from their EPF account for medical treatments and also for purchase of equipment for handicap without medical certificates.Earlier a member was required to submit  lots of certificates and complex forms for seeking advance for medical exigencies.Now, advance can be sought by a member only submitting a composite forms along with a self declaration;
  • One of the biggest achievements that the EPFO can  boast of is settling down PF claims through mobile phones.This is going to be reality very soon. The fund house is developing  a mobile application named UMANG which will receive withdrawal application online and every settlement process is going to be online.However, the final date for its roll out has not been announced yet;

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