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