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EPFO Withdrawal Reforms and RBI’s Fund Management Review

17 October 20251 min read
ECONOMYEPFO WithdrawalReforms and RBI’sFund ManagementReview17 October 2025safalsetu.com

Why in the news

EPFO eased access to savings, while RBI’s review flagged the cost of paying high returns.

Key facts

  • Up to 75% for illness, education, marriage, housing; 25% kept.
  • Minimum membership 12 months; kept 25% opens after one year unpaid.

Concerns

  • Payouts above 8% beat roughly 7% on 10-year G-Secs.
  • The gap is partly met by selling equities and other assets.

RBI recommendations

  • Actuarial assessment per scheme.
  • Split regulation and fund management.
  • Consider raising the 15% equity cap.

Exam angle

  • Ceiling: 75% withdrawal.

Test yourself

1. Under the EPFO reforms of October 2025, up to what share of PF can members withdraw prematurely for essential needs?

Members can withdraw up to 75%, with 25% retained.

2. How many times can PF be withdrawn for marriage under the new EPFO rules?

Marriage withdrawals are allowed 5 times; education 10 times.

3. Which equity allocation cap did RBI suggest EPFO consider raising beyond?

RBI suggested considering raising the equity cap beyond 15%.

This topic is part of Daily Current Affairs 17 October 2025 (15 topics).

All topics of the dayDay quizOctober 2025

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