Labour Ministry favours partial withdrawal from EPF
Putting aside a Finance Ministry suggestion, the Labour and Employment Ministry today said it favours partial withdrawal from employees provident fund (EPF) account by subscribers.
March 14, 2011 / 19:40 IST
Putting aside a Finance Ministry suggestion, the Labour and Employment Ministry today said it favours partial withdrawal from employees provident fund (EPF) account by subscribers.
The Finance Ministry had suggested that liberal advances and withdrawal from EPF account should be shunned to achieve old-age income security for employees because by not adhering to "one instrument, one policy objective" most employees retire with as less as Rs 35,000 in their accout.
"Ministry of Labour and Employment has replied to the Ministry of Finance mentioning the need for continuation of the provision for partial withdrawal from provident fund account of the subscribers," Labour and Employment Minister Mallikarjun Kharge said in the Lok Sabha.
In a written reply, he also said there was no move to put lock-in period for EPF withdrawal.
However, he said as per a notification issued January 15 this year, interest will not be paid on inoperative account from April 1.
He said the total number of inoperative accounts was estimated to be around three crore, with an amount of 8,318.69 crore lying in such accounts as of 2009-10 fiscal. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
