**EPFO Approves Liberalised Partial Withdrawal Rules to Benefit Over 70 Million Account Holders**

In a significant reform aimed at enhancing the ease of living for more than 70 million account holders, the Employees’ Provident Fund Organisation (EPFO) has approved liberalised partial withdrawal rules. This landmark decision allows members to withdraw up to 100 per cent of their eligible provident fund balance, reported PTI.

The announcement came during the Central Board of Trustees (CBT) meeting chaired by Union Minister Mansukh Mandaviya. The board resolved to simplify the existing 13 complex withdrawal rules into three clear categories:

– **Essential Needs** (such as illness, education, marriage)
– **Housing Needs**
– **Special Circumstances**

### Key Highlights of the New Withdrawal Rules

– **Full withdrawal (100%) allowed:** Both employee and employer contributions can be withdrawn entirely under specified conditions.
– **Increased withdrawal limits:** Education-related withdrawals can be made up to 10 times the previous limits, and marriage withdrawals up to 5 times, a significant jump from the earlier combined limit of 3 times.
– **Reduced minimum service requirement:** Members are now eligible for partial withdrawals after just 12 months of service.
– **Easier claims under Special Circumstances:** Members no longer need to specify reasons, reducing the chance of claim rejections.
– **Minimum balance to retain:** A minimum balance of 25 per cent must be retained in the account to ensure long-term retirement savings are protected.
– **Documentation-free processing:** The new process aims for 100 per cent auto-settlement of claims, making withdrawals faster and hassle-free.

### Revised Final Settlement Rules

The CBT also approved changes to the final settlement timelines:

– The waiting period for full EPF withdrawal has been reduced from 2 months to **12 months** after leaving an employer.
– The timeline for final pension withdrawal has been extended to **36 months** to safeguard pension benefits.

### ‘Vishwas Scheme’ Introduced to Ease Litigation

To minimize litigation, EPFO introduced the ‘Vishwas Scheme’ to resolve pending penalty cases under Section 14B. The scheme offers a flat penalty rate of 1 per cent per month, with reduced rates for shorter defaults. It covers both pending and ongoing litigations and will be operational for 6 months, extendable by another 6 months.

### Doorstep Digital Life Certificate Service for Pensioners

The board also approved a Memorandum of Understanding (MoU) with India Post Payments Bank (IPPB) to provide doorstep Digital Life Certificate (DLC) services free of charge to EPS 1995 pensioners. This initiative aims to help elderly pensioners, especially in rural areas, continue receiving their pensions smoothly without hassle.

### EPFO 3.0: A Member-Centric Digital Revamp

As part of the EPFO 3.0 digital transformation, a new member-centric digital framework was approved. Key features include:

– Integration with core banking solutions
– Adoption of cloud-native technology
– API-first architecture to enable faster, automated claims
– Payroll-linked contributions
– Multi-language self-service portals

### Investment Strategy and Digital Initiatives

Four fund managers have been selected to manage EPFO’s debt investment portfolio for a five-year term, ensuring safe and effective investment of retirement savings.

Minister Mansukh Mandaviya also launched several key digital initiatives focused on enhancing the efficiency and user-friendliness of EPFO services, reinforcing the organisation’s commitment to delivering seamless experiences to members.

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*With inputs from PTI*
https://www.mid-day.com/news/india-news/article/epfo-simplifies-13-complex-claim-rules-allows-100-per-cent-partial-withdrawal-check-complete-details-here-23598521