EPFO’s Financial Pivot: Ending COVID Advance Withdrawal for Fund Stability

In a recent development, the Employees’ Provident Fund Organisation (EPFO) has announced the termination of the COVID advance withdrawal facility for its members. Introduced on March 28, 2020, to assist members during financial hardships amid the pandemic, the facility has been deactivated to curb misuse and stabilize fund availability within the organization.

Current Status and Software Update

1. Notification Absence: EPFO has not released an official notification but is actively implementing the change by deactivating the non-refundable Corona advance facility in the software.
2. Preventing Misuse: The decision to discontinue the facility comes in response to reports of its misuse for non-essential expenses.

EPFO’s Delayed Decision and Announcement

1. Necessity of Decision: While delayed, experts view EPFO’s move as essential to address the impact on the organization’s funds.
2. Recent Announcement: The decision to end the Corona Advance Scheme was officially announced in a recent EPFO meeting.

Account Freezing and Unfreezing SOP

1. Standard Operating Procedure: EPFO has issued an SOP for freezing and unfreezing PF accounts, introducing a verification deadline of 30 days, extendable by another 14 days.
2. Ensuring Compliance: This SOP aims to ensure compliance with the new changes and streamline the account freezing and unfreezing processes.

Previous Privilege and Key Takeaway

1. Withdrawal Privilege: Account holders previously had the flexibility to withdraw funds without specifying reasons.
2. Withdrawal Limits: Members could withdraw either three times their basic salary or up to 75% of the total amount in their account.
3. Discontinuation Impact: The discontinuation of the COVID advance withdrawal facility signals the end of an emergency financial support measure, emphasizing adherence to standard withdrawal norms outlined by EPFO.

In summary, EPFO’s decision to end the COVID advance withdrawal facility is a strategic move to safeguard the stability of funds and prevent misuse. Account holders are urged to familiarize themselves with the revised norms and procedures for fund withdrawal as communicated by EPFO.