EPFO interest-free withdrawal: Employees' Provident Fund Organisation may come up with a new provision for fund withdrawal. Under the new provision, the subscribers will be given an option to withdraw interest-free funds to meet his/her daily expenses. This will fill a long-standing need of people who need to withdraw their funds, but are penalised for doing so if they do it before a certain period has passed.

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Sources close to development informed Zee Business that "the Central Board of Trustees (CBT) during its meeting on April 13, 2018, may decide on the new option that allows its subscribers, who are not in a job for continuous two months, to withdraw interest free funds from his account to meet his monthly expenses." 

The scheme is going to benefit at least five crore subscribers of the EPFO. Under the existing rules, the subscriber, who is out of the job for continuous two months, is supposed to go for a final settlement. There is no substitute for partial withdrawal in the existing rules.

According to the sources, it is going to be a one-time withdrawal option. The sources also said, during the meet, CBT will also be deciding on that should they allow the subscriber to re-deposit the withdrawn money in his/her account or not. 

The scheme will help such subscribers of EPFO, who are looking for a new job and the process is taking time to remain a part of the system and take the benefits of pension, insurance and interest among others. 

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Clearly, this rule change, if it happens will be welcomed by EPFO subscribers.