Again EPFO changes another rule. The Central Board of Trustees (CBT) of EPFO convened for its 236th meeting recently, led by Union Minister Mansukh Mandaviya. In the meeting, the government approved multiple modifications to enhance the advantages for EPFO members and streamline the procedure.
The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) has sanctioned the redemption policy for exchange traded funds (ETFs) to enhance members’ income. As per reports, the CBT has sanctioned the reinvestment of 50 percent of the earnings from the ETF into central public sector enterprises (CPSEs) and the Bharat 22 index.
Per the new policy, it is required to maintain the fund for a minimum of five years. The reports also indicated that the leftover sum will be allocated to various financial instruments, including government bonds and corporate securities. The Central Board of Secondary Education (CBT) has sanctioned the guidelines for investing in units offered by Public Sector Undertaking backed Infrastructure Investment Trusts (InvITs)/Real Estate Investment Trusts (REITs) governed by the Securities and Exchange Board of India (SEBI).
You will receive the advantage of increased interest
The board also sanctioned a significant amendment to the EPF Scheme 1952. According to the current regulations, interest on claims resolved by the 24th of each month is payable only up to the conclusion of the prior month. Interest will be paid to the member until the settlement date. The ministry stated that this will offer monetary advantages to the members and lessen complaints.
Rise in Automotive Claim Cap
In addition to this, the government has raised the auto claim cap. For housing, marriage, and education, this threshold has now been raised from Rs 50,000 to Rs 1 lakh. The government announced that 1.15 crore auto claims have been resolved in this financial year. As of November 2024, the rate of rejection has decreased to 14 percent.
These government decisions will advantage 7 crore EPFO members nationwide. The CBT mentioned that the EPFO has sped up its operations by processing 3.83 crore claims totaling more than Rs 1.57 lakh crore in the ongoing fiscal year. In the financial year 2023-24, the EPFO settled 4.45 crore claims totaling Rs 1.82 lakh crore.
