The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) recently met for its 236th meeting, led by Union Minister Mansukh Mandaviya.
During the meeting, several important changes were approved to increase the benefits for EPFO members and make the process easier.
New ETF Redemption Policy and Investment Guidelines
The CBT has approved a new policy for Exchange Traded Funds (ETFs) to help members earn more. Under this policy, 50% of the money received from ETFs will be reinvested in Central Public Sector Enterprises (CPSEs)
and the Bharat 22 Index. The new policy also requires that the fund be kept for at least five years. The remaining amount will be invested in other financial products like government bonds and corporate securities.
In addition, the CBT has approved new guidelines for investing in units of Infrastructure Investment Trusts (InvITs)
and Real Estate Investment Trusts (REITs), which are sponsored by public sector companies and regulated by the Securities and Exchange Board of India (SEBI).
Key Changes to EPF Scheme and Claims Process
An important change was made to the EPF Scheme 1952. Previously, interest on claims was only paid until the end of the month before the claim was settled.
Now, interest will be paid up to the settlement date, which will benefit members financially and reduce complaints.
Additionally, the government has increased the auto claim limit for house, marriage, and education expenses. The limit has been raised from Rs 50,000 to Rs 1 lakh.
The government reports that 1.15 crore auto claims were settled in this financial year, and the rejection rate has dropped to 14%.
These changes will benefit 7 crore EPFO members across India. So far, the EPFO has settled 3.83 crore claims worth over Rs 1.57 lakh crore in this financial year. In 2023-24, the EPFO settled 4.45 crore claims totaling Rs 1.82 lakh crore.