EPFO New Rule: EPFO's gift! First time home buyers will get down payment support from PF..

EPFO (Employees Provident Fund Organization) has made an important change in the rules of PF fund withdrawal, which is a big relief, especially for those salaried people who are planning to buy their house for the first time. Now, employees will be able to withdraw money from their PF account for the down payment of the house. This step will not only help lakhs of employees to fulfill their dream of owning a house, but can also strengthen the real estate and housing sector.

According to the report of Financial Express, this decision will make the process of buying a house easier, but along with this, it is also advised that the security of the retirement fund should not be ignored. While withdrawing money from PF, a thoughtful decision should be taken so that future financial security is not affected. Overall, this change is considered a positive step, which can help employed people a lot in buying a house.

Facility to withdraw money from the PF account for these works

Now it has become easier than before for first-time home buyers to withdraw money from the PF account. EPFO has taken a big step by changing its rules. Under the new rules, now EPFO members, whose account is at least 3 years old, can withdraw up to 90% of their PF balance. This amount can be used for the down payment of a house, paying home loan EMI, or building a new house.

Earlier, this facility was available only when the account was at least 5 years old. Also, the withdrawal limit was fixed, whichever is less between the total contribution of 36 months and the cost of the property, that much money could be withdrawn. Apart from this, if a member was involved in any housing scheme, then he could not withdraw money from the PF. The newly added Para 68-BD in EPF Scheme 1952 is now removing all these conditions. This rule allows first-time home buyers to avail of this facility only once.

Important changes related to EPFO
This change can prove to be very beneficial for those who have been planning to buy a house for a long time but were feeling the lack of funds for the down payment. EPFO has recently made many important changes related to PF withdrawal, which can prove to be a relief and beneficial for the employees. Now it has become easier than ever to withdraw money from PF, not only for buying or building a house, but also for other important needs.

The biggest change is that now an amount of up to ₹ 1 lakh can be withdrawn from PF instantly through UPI or ATM. This facility will prove to be very helpful, especially in emergencies, such as medical needs or a sudden need for money. Apart from this, EPFO has also increased the auto settlement limit. Earlier, claims up to ₹ 1 lakh were automatically processed; now this limit has been increased to ₹ 5 lakh. That is, there will be no need for manual verification in withdrawals up to this amount, and money will be received quickly.

Claim process made easy
The claim process has also been made easier than before. Earlier, claims were scrutinized on 27 points; now these have been reduced to 18. The effect of this is that 95% of the claims are now being settled in just 3-4 days, which is much faster than before. The process of withdrawing money from PF for expenses like medical expenses, children's education or marriage has also been simplified. This means that now at a time when expenses are necessary, employees will not have to run around much for money.
These reforms of EPFO are being considered a big step towards making employees more financially independent. However, PF money is for security after retirement, so a careful decision should be taken before withdrawing it.

Disclaimer: This content has been sourced and edited from News 18 hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.