Four crore members of retirement fund body EPFO will now be enabled to withdraw up to 90 percent of their fund to make the down payments for their home. The government will amend the EPF scheme in this regard.
Not only the withdrawal for down payment but, the amendment in the scheme will also allow the Employees’ Provident Fund Organisation (EPFO) subscribers to use their EPF accounts for paying equated monthly installments (EMIs) of home loans.
“The Government has taken a decision for modification in the Employees’ Provident Funds (EPF) Scheme, 1952, to add a new paragraph 68 BD,” Labour Minister Bandaru Dattatreya said in a written reply to Rajya Sabha on a query about Housing Scheme for the members of EPFO.
The minister told the House that the new proviso provides that “a member of Employees’ Provident Fund (EPF) being a member of a co-operative society or a housing society having at least 10 members of EPF, can withdraw up to 90 percent from the fund for purchase of dwelling house/flat or construction of dwelling house/acquisition of site.”
The proposed proviso also provides that “monthly installments for repayments of any outstanding payments or interest may also be paid from the amount standing to the credit of the member, to the Government/housing agency/primary lending agency or banks concerned.”
The minister told the House that the total number of EPF member accounts as on March 31, 2016, as per Annual Report for 2015-16, is 17.14 crore.
He further said that on an average, contributions had been received in respect of 3.76 crore members during the year 2015-16.
The withdrawal facility from the Provident Fund (PF) account under the Scheme will be available to only those PF members who fulfill the conditions prescribed.
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News Source: TOI