Govt rolls back 'atrocious' PF withdrawal norms

In a move forced by the thousand of protesters in Bangalore who took to streets on Tuesday against the PF withdrawal norms, GOI has revoked the order completely which intended to tighten the rules for withdrawal of provident fund money. Union Labour Minister Bandaru Dattatreya declared that the notification issued on February 10 stands cancelled and that the old system continues.

Employee’s Provident Fund (EPFO) has now allowed its members to withdraw the entire corpus before retirement but has specified conditions for withdrawal. Withdrawal from the PF account will be allowed for housing purpose, education, medical treatment and marriage of members' children. However the trade union workers have urged GOI to not put any specific conditions for withdrawals and that the money should be allowed to be withdrawn for any purpose.

Earlier central government announced in its February 10 notification that the members of the EPFO can withdraw the sum only after attaining 58 years of age and money cannot be withdrawn anytime before retirement age of 58. The notification also proposed the increase in retirement age for PF withdrawal to 58 from 54 years. This move was highly unpopular since its announcement and post Bangalore eruption and various protests across India via different modes; the roll back of PF withdrawal was announced.