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Here are EPFO Revised Cash Withdrawal Rules

The Employees’ Provident Fund Organization (EPFO) has announced revised rules for cash withdrawals, providing a significant boost in accessibility. The withdrawal limit for EPF has been doubled, offering much-needed relief to individuals in times of need.

Let’s delve into the details of these beneficial amendments.

Enhanced Medical Withdrawal Limits

EPFO has substantially increased the withdrawal limit for medical-related advances, particularly for treatment purposes. Previously capped at Rs 50,000, the withdrawal limit has now been raised to Rs 1 lakh.

This welcome change, outlined in a circular issued on April 16, aims to alleviate financial burdens during medical emergencies.

Form 31 Facilitates Partial Withdrawals

Under the revised regulations, EPFO has doubled the withdrawal limit under para 68J of Form 31, which facilitates partial withdrawals.

Form 31 serves as a conduit for premature withdrawals for various purposes such as constructing or purchasing a house, marriage expenses, and medical treatment.

Conditions for Rs 1 Lakh Withdrawal

Para 68J of Form 31 specifically caters to partial withdrawals for medical treatment. Previously restricted to Rs 50,000, individuals can now withdraw up to Rs 1 lakh for medical expenses.

However, it’s important to note that withdrawals cannot exceed six months’ basic salary and dearness allowance (DA) or the employee’s share along with interest.

Nevertheless, any surplus funds exceeding Rs 1 lakh in the account are eligible for withdrawal.

Eligible Circumstances for Claims

EPFO stipulates that funds can only be utilized for life-threatening illnesses, and withdrawals are permissible when the employee or their dependent is hospitalized.

Notably, hospitalization in a government-affiliated or recognized hospital is mandatory. In cases where treatment occurs in a private hospital, evaluation is required before a claim can be processed.


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