EPFO Makes PF Withdrawals Easier, Hikes Interest Rate; Check Details

The Employees' Provident Fund Organisation (EPFO) has announced a significant update regarding the payment of interest on PF claim settlements. The new rules will help EPF members receive a higher interest amount at the time of claim settlement and ensure faster processing of claims.

In a recent meeting of the Central Board of Trustees (CBT), an important amendment to Paragraph 60(2)(b) of the EPF Scheme, 1952, was approved. Under the existing provisions, interest is paid only until the end of the previous month for claims settled by the 24th of the current month. However, with the new amendment, interest will now be paid to the member up to the actual date of settlement. This change will benefit members financially and reduce the number of complaints.

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Until now, if a claim was not settled by the 24th, the processing would often be delayed until the following month. The new rule allows claims to be processed continuously throughout the month, reducing delays, ensuring timely settlements, and improving resource utilisation.

According to reports, after this amendment, interest on the EPF balance will accrue until the actual date of claim settlement. Experts noted that under the old system, interest was not paid for the days between the start of the current month and the settlement date, leading to a financial loss for members. With the revised rule, members will no longer lose interest for this period.

There is no official word yet on when the new rule will come into effect. It will be implemented only after a formal government notification is issued.