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Govt to allow upto 90% EPF withdrawal to buy house

What is the Employee Provident Fund?
Introduction
  • Employee Provident Fund (EPF) is a retirement benefit applicable only to salaried employees.
  • It is a fund to which both the employee and employer contribute 12% of the former's basic salary amount each month, a percentage that is pre-set by the government.
  • EPF is maintained by EPFO (Employees Provident Fund Organization) which works under the Ministry of Labour and Employment, Government of India.

  • Online PF withdrawal to start from August
    12 Feb 2016
  • EPFO planned to launch a system that would make PF accounts online.
  • The service, expected to be launched by Aug'16 would reduce paperwork and provide hassle-free services to subscribers.
  • With the online facility, withdrawals would take only a few hours and the money would be directly transferred to the bank account linked to Aadhar based Universal (portable PF) Account Number.

  • Inoperative PF accounts to earn interest
    29 Mar 2016
  • The NDA government had reversed the decision of the UPA government by which the PF accounts which do not receive any contribution for 3 years were not to receive any interest.
  • Now, all accounts including inoperative ones would receive interest from 1st April 2016.
  • However, no decision was taken on whether the interest would be provided to these accounts for the period Apr'2011- Apr'2016.

  • More than 60% accounts inoperative
    FACT
    Currently, 9.23 crore EPF accounts out of total 15 crore accounts are inoperative. These inoperative accounts have around ₹44,000 crore deposit in them.

    Labour ministry eases withdrawal of EPF
    19 Apr 2016
  • The labour ministry has eased the proposed restriction on withdrawal of EPF (Employee Provident Fund).
  • The withdrawal can now be allowed for housing, major medical treatment of oneself and family, medical, dental, engineering education of children and their marriage.
  • The norms, which come into effect from August 2016, were being demanded by the labour unions to which the government has now acceded.

  • Idle EPF accounts will earn interest
    16 Nov 2016
  • The Labour Ministry has modified the definition of 'inoperative accounts', allowing accounts that have been idle for 36 months or more to still accumulate interest.
  • Earlier, inoperative accounts did not accrue interest until the individual seeks new employment and transfers the amount to the new EPF account.
  • Now accounts will be termed inoperative only if the user retires or migrates abroad permanently.

  • Now, interest on provident fund deposits reduced to 8.65%
    19 Dec 2016
  • The Employees Provident Fund Organization (EPFO) reduced the rate of interest on provident fund deposits for fiscal year 2017.
  • The new interest rate will be 8.65% for 2016-17 from the current 8.8%.
  • The Central Board of Trustees (CBT), EPFO's topmost decision making body reduced the interest rate in line with the falling rate regime.

  • Labour Min to increase EPFO exposure to 15%
    06 Mar 2017
  • Labour Minister Bandaru Dattatreya seeks to hold a meeting with the Central Board of Trustees to increase EPFO's stock market exposure from 10% to 15%.
  • Sources said that currently, 10% or Rs. 17,000 crore is invested in exchange traded funds (ETFs), which seeks to be increased to 15%.
  • The meeting will likely take place in 10-12 days.

  • Govt to allow upto 90% EPF withdrawal to buy house
    16 Mar 2017
  • In a relief to home buyers, the government seeks to amend the Employees' Provident Fund scheme, to allow users to withdraw up to 90% of their EPF savings to put the down payment for buying a house.
  • Members will also be able to use their EPF to pay EMIs on home loans.
  • The announcement was made by Union labour minister Bandaru Dattatreya.



  • This post first appeared on NewsBytes: Latest News, Breaking News India, Today News, Current News, please read the originial post: here

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