EPFO latest News: In Covid-19 fight, govt settles 1.37 lakh EPF withdrawal claims in less than 10 days

Employees' Provident Fund Organisation (EPFO) has processed about 1.37 lakh claims across the country disbursing an amount of Rs. 279.65 crore under a new provision especially formulated by amending the EPF Scheme to help subscribers fight Covid-19, a government release said. The remittances of the moneys has already started taking place, the release said.

The provision for a special withdrawal from the EPF Scheme to fight Covid-19 pandemic is part of the Pradhan Mantri Garib Kalyan Yojana (PMGKY) scheme announced by the government. The government had introduced an urgent notification on 28 March to expedite the claims, the release said.

Under this provision non-refundable withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75% of the amount standing to member's credit in the EPF account, whichever is less, is provided. The member can apply for lesser amount also.

"This, being an advance, does not attract income tax deductions," the release said.

The system is processing all applications which are fully KYC compliant within less than 72 hours, the release said.

Claims for availing advance to fight pandemic are filed online, necessitating every EPF account to be KYC complaint as pre-cursor, the release said.

EPFO has relaxed date of birth correction criteria to ease KYC compliance enabling submission of claim to fight pandemic online, the release said.

Anticipating the huge surge in the demand, EPFO came out with a completely new software which has been developed from scratch and a receipt module for on-line receipt of the claims was introduced within 24 hours and deployed on 29th March 2020, the release said.

The application was required to be in paperless form to curtail any physical movement in view of social distancing, it further said.

See Zee Business Live TV Streaming Below:

It was decided to introduce a system of settling claims in auto mode directly by the system in respect of all such members whose KYC requirements was complete in all respects, the release further said.