Govt to allow self-approval for PF withdrawals from next fiscal

● EPFO to avail cash credit to address any liquidity crunch

- PRIYANSH VERMA & PRASANTA SAHU

THE EMPLOYEES' PROVIDENT Fund Organisation (EPFO) may introduce a "self-approval" mechanism for subscribers to withdraw money from their accumulated corpus under an automated process by early next fiscal year, according to official sources.

If this results in any liquidity crunch for the EPFO, it may avail cash-credit from commercial banks to meet temporary requirements, said the sources. By the end of FY24, the total corpus of EPFO was ₹24.75 lakh crore, of which about 63% was invested in financial instruments such as government securities, corporate bonds, and exchange-traded funds. The EPFO is going to hold consultations with the Reserve Bank of India (RBI) and major commercial banks to prepare a road map on how this mechanism can be established, the sources said.