Employees rushing to withdraw money from PF accounts, read why

NEW DELHI: Account holders are increasingly withdrawing money from the PF accounts, taking advantage of the rebate due to the lockdown.

According to the Employees Provident Fund Organisation (EPFO) of the Ministry of Labour, about 13 lakh account holders have availed this facility so far as Rs 4,684.52 crore has been paid on claims.

About 7.40 lakh claims are associated with the Pradhan Mantri Garib Kalyan Yojana package.

According to the Ministry of Labour and Employment, the number of withdrawals from exempted PF trusts has also increased. According to the data on April 27, a total of 79,743 exempted PF trust account holders withdrew Rs 875.52 crore from the accounts.

Similarly, 54,641 account holders of 222 private establishments withdrew Rs 338.23 crore, while 24,178 beneficiaries of 76 public sector establishments withdrew Rs 524.75 crore from their accounts. Similarly, 23 cooperative sector establishments gave Rs 12.54 crore to 924 account holders.

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What is the discount?

On March 26, Finance Minister Nirmala Sitharaman had announced a package of 1.70 lakh crore under the Pradhan Mantri Garib Kalyan Yojana, in which PF account holders, who have been facing economic crisis during COVID-19, were also allowed to withdraw money.

Following the announcement, a new sub-para (3) was added to Para 68L of the EPF Scheme, 1952. Under which an account holder can withdraw money equal to 75 per cent of the account amount or three months dearness allowance (whichever is less). After withdrawing money, the account holder will not need to re-credit the account.

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