PF norms eased: Withdrawal allowed for housing, medical, education and marriage of children

Under fire from trade unions, Employees' Provident Fund Organisation (EPFO) has decided to change the new rules that restrict employees from withdrawing their entire provident fund (PF) balance till the age of 58.

The EPFO has brought in norms that exclude subscribers falling in certain categories. According to amended norms, a subscriber can withdraw his or her entire savings for housing purpose, treatment of himself/herself or family members suffering from TB (tuberculosis), leprosy, paralysis, cancer or undergoing heart operation, marriage of children as well as professional education (medical, engineering, dental) of children.

Further, the rules have been relaxed for a member who joins an establishment under the control of the central or state governments and becomes a member of old-age pension schemes framed by the central or state governments. The fresh amendment will come into effect from August 1.

According to a February notification, EPFO subscribers can withdraw the employer's contribution of PF Withdrawal deposit only after attaining 58 years of age.

Under new EPFO norms, the employer's share will continue to earn interest as the body had recently approved a plan to credit interest to accounts which have no deposits for three consecutive years. According to EPFO norms, 12 per cent of an employee's salary goes as contribution to the fund, along with a matching contribution from the employer.

Are we moving to a cashless society?

Many consumers in metros have seen their cash transactions go down significantly because of growing e-commerce, expansion of mobile wallets and online banking.

This is only the start of a march towards becoming a cashless society. Things are expected to change dramatically in a few years for urban consumers. Many entities are working on different electronic payment mechanisms that can usher in a digital payment revolution.

Wallet companies are aggressively tying up with retailers to let customers use mobile payments. National Payments Corporation of India (NPCI), a company promoted by banks, is working on a mechanism that will allow consumers to transfer money and make payments almost as easily as they send a text message.Read More

Save for retirement and enjoy tax benefit, too

Increasing life span and high inflation mean that you need to save more to meet your retirement schemes needs. To help you meet this challenge, HDFC Mutual Fund has launched HDFC Retirement Savings Fund, which is both an equity-linked savings scheme (ELSS) and a pension scheme. 

Investments made in this fund will allow you to enjoy tax deduction under Section 80C. The fund comes with a lock-in period of five years. The new fund offer (NFO) will close on February 19.

Buying property online

Buoyed by the success of its previous sale during the festival season two months back where over 9,500 buyers registered on the website, Snapdeal has launched another online real estate shopping festival that showcases over 100 properties from all over India.

Most discounts are straightforward discounts on the selling price. A buyer can get a discount of up to Rs 2 lakh on Sunteck's City Avenue 1 project in Goregaon West in Mumbai that selling at Rs 16,500 a square foot.

Ruparel Realty's Primero at Tilak Nagar in Mumbai offers discount up to Rs 2.3 lakh that's selling for Rs 12,600 a sq ft and starting at Rs 85 lakh.