Covid effect? 6.5% more a / c PF closed between April and December | India News
The number of accounts closed during the first nine months of 2019-2020 amounted to 66.7 lakh. An EPF account is closed for a variety of reasons, including retirement, job loss, or a job change. There are over 5 crore of active EPF accounts.
Withdrawals, however, increased by more than 33% to Rs 73,498 crore during the nine months of the current financial year compared to Rs 55,125 crore in the corresponding period last year, Labor and Employment Minister Santosh Gangwar said in Lok Sabha on Monday, while answering a question from Congressman Abdul Khaleque.
With the coronavirus pandemic presenting unprecedented challenges, businesses facing closure and unemployment levels on the rise, EPFO partial withdrawals also increased in 2020. While the number of partial withdrawals in 2019 was set at 54.4 lakh, the numbers more than doubled to 1.3 crore partial withdrawals in 2020.
The government had opened a special window that allows subscribers to the Employees Provident Fund (EPF) to dip into their retirement savings to overcome the crisis in the crown. In fact, people were allowed to remove up to 75% of their kitten, a facility that has been taken advantage of by many who lost their jobs.