EPFO New Rule: Good news for crores of employees! PF interest to be credited by July 15..
The EPFO has shared important news for PF account holders. The moment everyone has been waiting for is finally here. The EPFO has announced that, under the new system, 8.25% interest—amounting to approximately ₹1.44 lakh crore—will be credited to 34 crore accounts by July 15.
Additionally, a significant update is the implementation of a new Centralized IT System (CITES) designed to make PF-related services faster and more convenient. With this system, data from PF accounts across the country will be consolidated into a single centralized database, enabling members to access services from any EPFO office.
What can be done using the EPFO CITES?
Information such as PF balances, claim status, service records, and pension details will now be easily accessible on a single portal. The system will identify potential errors before a claim is even submitted, thereby reducing the likelihood of rejection. With this new system, the process of withdrawing PF funds has also become easier than before.
Under the new arrangement, the system will detect any deficiencies in documents or information before claim submission. Members will also be able to view their eligibility regarding withdrawal categories and amounts. This significantly minimizes the risk of claiming incorrect amounts and facing subsequent rejections.
Rules regarding PF claims
The EPFO has also raised the limit for auto-claim settlements. Advance claims of up to ₹5 lakh can now be auto-approved for fully KYC-verified accounts; previously, this limit was ₹1 lakh. If additional information is required during the claim process, the EPFO will seek clarifications online, and members can respond online as well, reducing the need for physical visits to the office.
The 13 complex rules governing PF withdrawals have been streamlined into just three simple categories. Members can now withdraw up to 75% of their total PF balance. Furthermore, any deficiencies in a claim can be addressed online, and the settlement amount will be credited directly to the member's bank account.
Relief for Millions of PF Account Holders
The Employees' Provident Fund Organisation (EPFO) has implemented the CITES 2.01 (Centralised IT-Enabled Services) process to make its services fully digital and faster.
Union Labour Minister Mansukh Mandaviya stated that the implementation of this new system would provide PF account holders with several new services. He explained that under the new system, the claim amount would be credited directly to the bank account on the very day the claim is approved. Additionally, interest on the PF balance will accrue up to the date of final payment approval; previously, interest was calculated only up to the last day of the preceding month.
The EPFO has consolidated all PF records from across the country into a single central database. Previously, each office maintained a separate database, forcing members to rely on a specific office. Now, services can be availed from any authorized EPFO office. The EPFO announced that 8.25% interest would be credited to approximately 34 crore accounts by July 15, involving a total interest payout of around ₹1.44 lakh crore. Account holders will no longer have to wait until October or November for interest to be credited. Furthermore, upon changing jobs, the PF balance will automatically transfer to the new employer's account, and pensioners will be able to access services through any EPFO office or bank across the country.
Good News for Those Changing Jobs
Significant relief has also been provided to employees changing jobs. PF accounts linked to an Aadhaar-based UAN will now be transferred automatically. There will be no need to submit a separate application or obtain approval from either the old or the new employer. Service tenure details will also be transferred automatically. EPS pensioners will also benefit from the new system; they can now submit their life certificates and avail of other services at any EPFO office in the country. Additionally, with the implementation of the Centralised Pension Payment System (CPPS), pensions can be received in any bank account across India, regardless of which regional office handles the pension case.
Disclaimer: This content has been sourced and edited from News18 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.
