This story is from June 25, 2020

PF withdrawals shoot up from 1,800 in April to 15,000 in June

PF withdrawals shoot up from 1,800 in April to 15,000 in June
NAGPUR: As Covid-19 hits personal finances, nearly 17,000 persons in the region have dipped into their provident fund (PF) account withdrawing more than Rs26 crore till June first week. As a special measure, the Employees Provident Fund Organization (EPFO) has allowed withdrawal under the Covid-19 pandemic head, as a means to provide its subscribers help to tide over the monetary crisis.
Under this, employees can withdraw up to 75% of their PF balance or three months of salary, whichever is lesser.
In the normal course, withdrawals can happen for reasons like marriage, children’s education, medical treatment or, purchase of house property or its renovation or on loss of job.
The EPFO office, which covers the entire private sector and some public sector undertakings (PSUs), has offices covering Nagpur and Akola regions in Vidarbha. The offices cover eastern and western parts of the region.
The numbers are higher in Nagpur region, with nearly 15,000 employees having applied for a withdrawal of some amount, in all over Rs25 crore. This is a major jump as compared to April, when EPFO office here received 1,800 applications for an amount of Rs40 lakh. At that time, Rs297 crore had been withdrawn from offices all over the country.
The numbers are much lower in the Akola office as compared to Nagpur. Here 2,674 employees have applied to withdraw Rs6.2 crore under the Covid advance.
Sources say in Vidarbha say the numbers are still low as compared to other centres in the country. The low amount of withdrawal also indicates wages here are less. With over Rs25 crore withdrawn by workers in Nagpur region, the average comes to a little more than Rs16,000. In Akola region, it comes to Rs22,000.

The rules also limit the amount of withdrawal. Even as 75% of the total balance can be withdrawn, it comes with a rider that it has to be less than three months salary.
However, a source in Akola office said a marginal increase was seen in withdrawals under other heads. In this office, withdrawal under other heads are at Rs37 crore in last three months. In the normal course, such withdrawals are at Rs10 crore a month on an average, said the source. The additional withdrawals may also be to supplement the shortfall arising after taking advances under the Covid head, said a source.
In Nagpur, on the other hand, applications for withdrawals under rest of the heads were down to 4,000 a month as against 15,000 earlier.
A source said withdrawals are higher in centres having a large presence of IT industry. The money is expected to be parked in the stock market.
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