Provident Fund (PF) is an important saving instrument for the working class as it provides a good interest rate. The contribution is made from both employers and employees with 10% each from the basic salary of the employee.
It also comes in handy in case of emergencies as a certain percentage of the amount can always be taken out from the PF account. It can be withdrawn during retirement, or resignation.
However, looking at the dastardly effects of the COVID-19 pandemic, EPFO has now allowed the members to withdraw a certain amount from the PF account in case of the COVID-19 crisis or in the case of unemployment. EPF account yields a return of 8.5% annually.
Anyone with a PF account unemployed for a month or more can get a non-refundable advance of up to 75% of the amount available in their PF account. The EPFO earlier tweeted that “Members who are no longer employed for one month or more can avail a non-refundable advance of up to 75% of the amount available in their PF account.”
However, you have to keep certain things in mind while withdrawing money from the PF account in case of an emergency:
Seed Bank Account with UAN
The bank account number must be seeded with the UAN (Universal Account Number), failing which, you will be unable to withdraw money from that account. Besides that, IFSC code should be correct.
Incomplete KYC is something that will be unacceptable when it comes to withdrawing money from the PF account. The KYC details provided must be a verified one.
Incorrect Date of Birth (DoB)
If you give an incorrect date of birth (DoB) or it is already recorded in EPFO, then you won’t be able to withdraw the required amount. Now you can correct the date of birth for 3 years.
It is also necessary to link UAN and Aadhaar linking is also very important when it comes to withdrawal of money from the PF account. There are four ways to link a UAN or EPF account with Aadhaar. You can also link it while sitting at home.
Incorrect Bank Account Details
If you provide incorrect bank account details, then your application will be rejected and the PF money will be credited in the same account, which will be recorded in the records of EPFO.