In a move that is being welcomed by central government employees, the government has relaxed the norms for withdrawing money from the General Provident Fund (GPF). The decision will benefit more than 50 lakh central government employees. It has also been announced that central employees will now be able to get the funds within 15 days of submitting their application. In case of emergency, the time limit will be even less at just 7 days of submitting the application.
One of the major changes is the reduction in the number of years of service required for making withdrawals from GPF. The current norms require central employees to complete 15 years of service before they can make withdrawals from GPF. This has now been reduced to 10 years.
The other change is that central government employees can now make withdrawals from GPF for various purposes such as marriage, betrothal, funerals, medical expenses, and even for purchasing consumer durables.
Other changes have also been made based on inputs and feedback provided by GPF subscribers. “Some amendments had been made from time to time to address the concerns raised by subscribers. However, the provisions largely remain restrictive. There is a felt need to liberalize provisions, raise limits and simplify the procedure,” the government order said.