Provident Fund and The Art of Making an Online PF Withdrawal

Employees Provident Fund is a scheme for all salaried employees that means you can invest during work life and relish the advantages after retirement. EPF is overseen and maintained by the Employees Provident Fund Organization.

If you're looking for "Provident Fund meaning", then you should know it is well-known with the slogan "Savings for the Future." According to the National Portal of India, any organization with 20 or more employees is mandated to register with the Employees Provident Fund Organization.

It is a savings platform that supports employees to save a fraction of their salary each month that can be used if they are unable to work or when they retire.

EPF is an essential tool for retirement planning. If it is continued for a very long period, it can help fulfill the retirement plan. Tax-free interest (compounding) and maturity guarantee satisfactory growth for your money.

However, the Government of India and the Central Board of Trustees decide the Compound Interest rate, and it is paid on the amount credited to the employees on 1st April of each year.

But while meeting other purposes or during crises, we run out of funds even after drilling all the resources and forcing loans. The Employees Provident Fund can be beneficial due to certain advantages it delivers, which most of us are unaware of.

Benefits of Employees Provident Fund

• "Your Savings for the Future" campaigns advertise one of the significant benefits of EPF, which means it helps you save for the long run.
• The deductions are made from the employees' monthly pay, and there's not a single requirement for making a lump-sum investment.
• It often works as financial security for employees during a crisis or emergency.
• It helps you maintain a good life after retirement.

A simple way to withdraw PF Online

A note must be taken by those who want to withdraw the Employees Provident Fund; the note states that the withdrawal can be made both partially and fully. Whether you are making an Offline or Online PF Withdrawal, both come with specific terms and conditions.

Read on to know the conditions in which you can make offline and online PF withdrawals

1. Retirement: Contributions towards Employees Provident Fund can only be made till you are 58. But if you've decided to retire early, then 55 is the eligibility age for PF.
2. Unemployment: You're eligible for withdrawal of 75% of your total PF if you've been jobless for at least two months.
3. Medical Purpose: In case of an emergency or crisis, you can easily withdraw the EPF.
4. Wedding: You can withdraw PF for wedding purposes, but only if you've been in the service life for a minimum of 7 years.
5. Repayment for Home Loan: Minimum of 3 years of service life is required to withdraw the EPF for repaying the home loan.
6. Purchase or Construction of House: If you wish to buy or build a house, it is required that the individual must have completed a minimum of five years of service, and similar conditions are applicable for the renovation and reconstruction of the house.

Portal

The e-Seva member portal is easily accessible, and members must use it to make an Online PF Withdrawal.

Prerequisites

Employees Provident Fund members must have the following to process an online withdrawal claim:

1. UAN: An activated Universal Account Number.
2. Mobile phone number registered with the Adhaar and UAN database.
3. Adhaar Details.
4. Bank Details along with IFSC Code.
5. PAN.

Authentication

A unique password is sent to the mobile number registered with the UIDAI Aadhaar database.

Submission of OTP will initiate the withdrawal process. Once the claim is processed, the withdrawal amount is credited to the employee's bank account of record.

Points to Note

• The mobile phone number registered in the Aadhaar database and the number with EPFO must be the same.
• Another point to remember is that if you're applying for withdrawal of Partial EPF, you are not required to submit any document.

Now that surely brings a lot of conveniences and easy access to one's money, as the current EPF withdrawal system requires a minimum of 30 days to process the aforementioned EPF claims.