EPFO scheme: Let us tell you that recently this special facility for Employees Provident Fund Organization employees has been banned. Actually, for some years about 2.2 crore PF account holders were taking full advantage of this scheme. Let us know the main reason behind this…
PF Withdrawal Scheme: Big news has come for about 7 crore subscribers of Employees’ Provident Fund Organization (EPFO). The organization has decided to discontinue a scheme started during the Corona period. Within 3 years, about 2.2 crore PF account holders had taken advantage of this scheme. Now news is coming from sources that EPFO is closing this scheme, because the World Health Organization had given an update regarding the end of Corona.
In fact, the World Health Organization (WHO) had issued a statement a few days ago saying that the state of emergency of Corona is now over. Therefore, the protocols implemented around the world regarding this can also be abolished. After this statement of WHO, EPFO has also decided to close one of its special schemes started during the Corona period.
Why was this scheme special –
According to the report, EPFO had recently announced in a meeting that the Covid Advance Scheme is now being discontinued. Under this scheme, the PF subscriber had the freedom to withdraw money from his account without giving any reason. Every account holder could withdraw money twice under the scheme. However, no official notification has been issued in this regard yet, but a decision regarding this has been taken in the meeting.
Can you apply now?
An official related to the matter said that a notification regarding this will also be issued soon. At present, the option of Covid advance facility has been closed on the official website of EPFO. Therefore, now PF account holders will not be able to apply under this scheme.
Expert told the right decision –
Labor economist KR Shyam Sundar says that this decision of EPFO is right, but it was taken very late. He should turn off this feature already. This facility was started to provide financial help to the affected people during the Corona period and about 30 percent of the subscribers also took advantage of it. Due to excessive withdrawal, EPFO will not have enough funds left to invest and will have to take more risk to give returns.
Got big benefits from the scheme –
About 2.2 crore subscribers have availed the benefit of this scheme which was started in emergency situation during Covid. During 3 years, Rs 48,075.75 crore was withdrawn from the PF account. It was told in the EPFO report that Rs 17,106.17 crore was withdrawn in the financial year 2020-21, Rs 19,126.29 crore in 2021-22 and Rs 11,843.23 crore in 2022-23. EPFO currently has more than 6 crore subscribers and a fund of more than Rs 20 lakh crore.
How much money was allowed to be withdrawn?
Under the scheme, PF account holders were allowed to withdraw 3 times their basic salary or 75 percent of the total amount deposited in the account, whichever is less. There was no need to put this money back in the account. Its benefit was given equally to all PF account holders and this was the reason that one third of the employees took advantage of it.
