EPF : Center gives good news to EPF users. In this regard, it has given flexibility to take pension from any bank. It will be useful for those who get pension through EPF after retirement. The Center has recently taken a decision approving this new policy. With this, 78 lakh people have been availed of this benefit until now, and till now they had the option of getting pension after retirement only from the concerned bank. It will be implemented from January 1, 2025. This new system will benefit private employees. Going into full details..
A certain amount is deposited every month through EPF system for private employees. This amount along with interest is paid after retirement. But if you keep the EPF account continuously for ten years, you can get pension after retirement. This pension depends on their accumulated amount. But till now there was a requirement to withdraw this pension from a single bank. Now it can be taken from any bank approved by the government.
As time goes by, the Center intends to facilitate some of the facilities. Especially in the case of EPF, some regulations are being changed. Earlier, only 75 percent of the amount deposited in EPF could be withdrawn in advance. But now it has provided a facility to withdraw even 90 percent for medical needs. It has also simplified some rules while withdrawing them. Previously, if you applied manually, you were given a chance to draw. Now you can apply online from anywhere.
And since last July, EPP has started releasing interest payments to outgoing members. It paid Rs.9,260 crore to 23.04 lakh members at an interest rate of 8.25 per cent for the year 2023-24. In 2022-23, this interest was 8.15 percent, but recently it was increased to 8.25 percent. These interest payments are made easier by the IT and banking sectors. In the past these payments were a bit difficult. But this interest was paid through the adoption of a centralized pension payment system as part of modernization. While this EPF interest was approved by the Finance Ministry on May 6, 2024, the Ministry of Labor said that the new interest will be paid by May 24.
