withdrawal before retirement capped at 75%: EPF

withdrawal before retirement capped at 75%: EPF

jobless Employees’ Provident Fund (EPF) subscriber who hasn’t crossed the retirement age (60 years) will now be able to withdraw only up to 75% of the accumulated EPF deposits, as against 100% earlier.

A month without a job will make a subscriber eligible to withdraw the deposits. Earlier, pre-retirement withdrawal of EPF funds required the subscriber to be without job for a continuous period of two months.

“The commissioner or, where so authorised by the commissioner, any other officer subordinate to him, may permit a member, on ceasing to be an employee in any factory to establishment to which the Act applies, a non-refundable advance upto 75% of amount standing to his credit in the fund, if he has been employed in any factory or other establishment for a continuos period of not less than one month,” said the Employees’ Provident Funds (Amendment) Scheme, 2018, notified on December 6.

Employees’ Provident Fund Organisation (EPFO) manages social security funds of workers in the organised and semi- organised sectors. The retirement fund has more than six crore active members who have contributed at least in one month during the year.

While an employee, earning upto `15,000 a month, contributes 12% of the basic pay to EPF, the employer contributes 8.33% towards employees’ pension scheme and 3.67% to the EPF. Additionally, the employer also pay 0.5% towards Employees’ Deposit-linked Insurance (EDLI) Scheme, 0.65% as EPF ACs and 0.01% as EDLI handling fee, taking the total contribution to 13.61%.

Labour ministry sources said the decision to cap the withdrawal was taken after it was found that a large numbers of final withdrawal claims were filed by the members even before the attaining the age of retirement.

“Such withdrawal ends the membership of the person early and thus affects the social security of the members and his family. Out of these cases, early final settlements, many cases are due to non-employment of member for more than two months,” said a source.

EPF scheme does not have provision for advance to members during such kind of non-employment and the scheme allows only full and final settlement. This compels members to withdraw entire amount at the cost of their social security. The labour ministry said that there was a need to provide a social security cover during the period of non-employment as well.

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Shaktikanta Das appointed as the new RBI Governor

Shaktikanta Das, former top bureaucrat in the Finance Ministry and key face of the government during demonetisation, has been appointed as Governor of the Reserve Bank of India for a period of three years. The Appointments Committee of the Cabinet approved the move a day after Urjit Patel abruptly resigned from the post citing “personal reasons”.

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Das, who retired as Secretary of the Department of Economic Affairs, had served in various capacities in the Finance Ministry, including as Secretary in the Revenue department and as a key official in the Budget division. After his retirement on May 28, 2017, he was appointed as a member of the 15th Finance Commission and as the G20 Sherpa.

Das, 61, a 1980-batch IAS officer of the Tamil Nadu cadre, is a post-graduate in history from St. Stephen’s College, Delhi. During demonetisation, he held regular briefings on behalf of the government as Economic Affairs Secretary to announce key changes, even as then RBI Governor Patel maintained silence.

Among the many plans during that phase in 2016, Das had announced a proposal to put indelible ink on the index fingers of people to prevent them from exchanging old currency multiple times beyond specified limits. Following widespread outrage, the move was later withdrawn.

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Labour Minister Santosh Gangwar :SBI will cease to be EPFO fund manager from March-end,

Currently, SBI, ICICI Securities Primary Dealership, Reliance Capital, HSBC AMC and UTI AMC are fund managers of the EPFO.

Currently, SBI, ICICI Securities Primary Dealership, Reliance Capital, HSBC AMC and UTI AMC are fund managers of the EPFO.

The country’s largest lender State Bank of India (SBI) will cease to be a fund manager of retirement fund body EPFO by March-end, as a bank cannot function as an asset management company under the RBI norms.

“We have been told that SBI cannot work (as fund manager of the EPFO). We have not engaged (its arm) SBI Mutual Fund (as fund manager) because it was not there (as an applicant at the time of bidding) earlier,” Labour Minister Santosh Gangwar said.

He was addressing reporters after a meeting of the Employees’ Provident Fund Organisation’s (EPFO) apex decision-making body Central Board of Trustees (CBT), chaired by him here.

The minister also said: “We have given them (all five fund managers) time till March. We will discuss and take a call as to whom we can engage as a fund manager. We had engaged SBI. But its job is banking and not this job (fund managing). SBI Mutual (Fund) was not enrolled with us as a fund manager. After March, if they (SBI’s fund managing arm) come for this then we can engage them.”

Currently, SBI, ICICI Securities Primary Dealership, Reliance Capital, HSBC AMC and UTI AMC are fund managers of the EPFO.

The EPFO has separately engaged SBI Capital and UTI Mutual Funds as exchange-traded fund (ETF) managers. The SBI Capital manages 75 per cent of ETF investment of the EPFO, while the UTI Mutual Funds takes care of the remaining 25 per cent.

During the meeting, another proposal to increase the proportion of UTI Mutual Funds as ETF manufacturer came up for discussion which was referred to the EPFO’s finance, audit and investment committee (FAIC). The body has invested about Rs 55,000 crore in ETFs so far, a senior official said.

On the issue of giving higher pension to employees contributing more towards Employees Pension Scheme-95 (EPS-95), the minister said: “This matter is sub-judice with the Supreme Court. After the decision of the apex court, we will take a decision. We have sought an advice of an actuary on this issue. We will take a decision factoring in that advice. There were a large number of people who came here today on this issue. But the decision would be taken by the Government of India.”

Asked about doubling the minimum monthly pension to Rs 2,000, he said: “There was no such proposal listed on the agenda for meeting today. The government has to make arrangement (provide funds) for managing existing minimum monthly pension of Rs 1,000. This is subject to government approval.

“We told (the Finance Ministry) what would be the financial implication for keeping minimum monthly pension at Rs 1,000, Rs 2,000 and Rs 3,000 levels. This will be decided by them (the Finance Ministry).”

The CBT meeting Tuesday held by newly-reconstituted Board, approved the constitution of the FAIC, Pension & EDLI (insurance scheme) Implementation Committee and Exempted Establishments Committee (for PF trusts).

The CBT ratified the proposal of appointment of CRISIL Ltd as Consultant to assist the EPFO in selection and review of portfolio managers.

The Board also mandated FAIC to select new fund manager for managing the corpus of the EPFO.

It extended the tenure of the current portfolio managers up to March 31, 2019 or till appointment of new portfolio managers, whichever is earlier. The Board also extended the tenure of CRISIL Ltd as consultant up to March 31 2019 or till appointment of new portfolio managers, whichever is earlier.

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I am offering to pay 100% back. I humbly request the Banks and Government to take it: Vijay malya

billionaire Vijay Mallya has on December 5 offered to pay back the entire principal amount of Rs 5,500 crore that he owed various banks.

Vijay Mallya, 62, his now-defunct Kingfisher Airlines and others availed huge loans from various banks. He left India in March 2016 after banks got together to initiate legal proceedings to recover an outstanding of more than 9,000 crores. India formally asked for his extradition in February last year.

In the UK for the past two years, he has been fighting India's attempts to bring him back to face trial.

Vijay Mallya

✔@TheVijayMallya

Politicians and Media are constantly talking loudly about my being a defaulter who has run away with PSU Bank money. All this is false. Why don’t I get fair treatment and the same loud noise about my comprehensive settlement offer before the Karnataka High Court. Sad.

763

6:02 AM - Dec 5, 2018

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In a letter to Prime Minister Narendra Modi earlier this year, the tycoon said he was "making every effort" to settle his dues to banks but he had been made the "Poster Boy" of bank default and a lightning rod for public anger.

Vijay Mallya

✔@TheVijayMallya

I see the quick media narrative about my extradition decision. That is separate and will take its own legal course. The most important point is public money and I am offering to pay 100% back. I humbly request the Banks and Government to take it. If payback refused, WHY ?

946

8:41 AM - Dec 5, 2018

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In his latest tweets Vijay Mallya said his business group "contributed thousands of crores to the state exchequers" for three decades. "Kingfisher Airlines also contributed handsomely to the states. Sad loss of the finest Airline but still I offer to pay Banks so no loss. Please take it," he tweeted.

He remains on bail on an extradition warrant executed by the Scotland Yard last year on fraud and money laundering charges. A ruling at the end of his extradition trial is expected at Westminster Magistrates' Court in London on December 10.

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New PAN Card Rules Coming On December 5,What To know

The Income Tax Department also announced changes in the application form of a PAN card.

Here are five things to know about new PAN card rules:

1. In case a managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office bearer (or any such person who does not have PAN), he/she will also be required to apply for PAN on or before May 31 of the following financial year, the notification said.

2  With the new rules, resident entities will have to obtain PAN card even if the total sales, turnover or gross receipts are not likely to exceed Rs. 5 lakh in a financial year, said Suraj Nangia, Partner, Nangia Advisors LLP. "This will help the income tax department track financial transactions, broaden its tax base and prevent tax evasion".

3. The Income Tax Department also announced certain changes to the application form for PAN. It amended the income tax rules and said that quoting of father's name in PAN application forms would not be mandatory in certain cases.

4. The amended rules provide that furnishing of father's name will not be mandatory for a person whose mother is a single parent. The new rules will become applicable from December 5, said the CBDT notification.

5. PAN is an identification number assigned to income tax assessees in the country. It is required for financial transactions such as opening of a bank account and filing of income tax returns (ITR).

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