Question : Withdrawal of EPFO Fund for Housing

(a)whether the Government proposes to amend the Employees'' Provident Fund (EPF) scheme to enable around 4 crore members of Employees’ Provident Fund Organisation (EPFO) to withdraw upto 90 per cent of their funds for buying houses and if so, the details thereof;
(b)whether the said amendment would also allow the EPFO subscribers to use their EPF for paying monthly instalments of home loans and if so, the details thereof; and
(c)whether under the proposed provision in the EPF scheme, the subscribers would have to form a co-operative society with at least 10 members to avail the facility and if so, the details thereof?

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT
(SHRI BANDARU DATTATREYA)

(a) to (c): A statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF LOK SABHA STARRED QUESTION NO. 5 TO BE ANSWERED ON 17.07.2017 BY DR. P. VENUGOPAL REGARDING WITHDRAWAL OF EPFO FUND FOR HOUSING.

(a) to (c) The Government vide Notification No. G.S.R.351 (E) dated 12th April, 2017 has inserted a paragraph 68BD in Employees’ Provident Funds (EPF) Scheme, 1952 for withdrawal from the Employees’ Provident Fund (EPF) for purchasing dwelling house or flat or construction of a dwelling house.

The withdrawal amount from the Provident Fund shall not exceed ninety per cent of the employer’s share of contribution and interest thereon and employee’s share of contribution and interest thereon.

The Scheme envisages that a member can authorise monthly installment for the repayment, wholly or partly, of any outstanding principal or interest of a loan obtained in the name of the member or spouse of the member or jointly by the member and the spouse.

The payment can be made on behalf of the member to a housing agency or primary lending agency or bank concerned, etc.

The subscriber should be a member of a cooperative society or a society registered for housing purpose under any law for the time being in force and such society has at least ten members of the Fund.

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