The Employees’ Provident Fund Organisation (EPFO) has terminated the facility for its members to withdraw COVID advance from their PF accounts. This facility, aimed at tackling financial hardships during the pandemic, was initiated on March 28, 2020, following amendments to the EPF Scheme of 1952.
Current Status
- Notification: EPFO has not yet released an official notification regarding this change.
- Software Update: The provision for non-refundable Corona advance is being deactivated in the software, preventing account holders from applying for it.
- Misuse of Funds: The facility was reportedly being used for non-essential expenses.
EPFO’s Delayed Decision
Experts believe that the EPFO’s decision, though delayed, was necessary as it was affecting the availability of funds in the organization.
Announcement
- The decision to discontinue the Corona Advance Scheme was recently announced in an EPFO meeting.
- Account Freezing and Unfreezing: EPFO has issued a Standard Operating Procedure (SOP) for freezing and unfreezing of PF accounts, setting a verification deadline of 30 days, extendable by another 14 days.
Previous Privilege for Account Holders
- Members had the liberty to withdraw funds from their accounts without citing reasons.
- Employees were permitted to withdraw either three times their basic salary or up to 75% of the total amount in their account.
Key Takeaway
The discontinuation of the COVID advance withdrawal facility by EPFO marks an end to an emergency financial support measure introduced during the pandemic. This step is seen as a move to stabilize the fund’s availability and prevent misuse of the withdrawal facility. Account holders must now adhere to standard withdrawal norms and processes as outlined by EPFO.
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