- Vishwas Scheme has been introduced by Labour and Employment Minister Dr. Mansukh Mandaviya at the 238 th meeting of the Central Board of Trustees (CBT) of EPFO) in New Delhi. The project will serve to minimize litigation, ease penalties and enhance member convenience within the EPF system.
- The salient points of the Vishwas Scheme .
- Purpose: Settle old EPF lawsuits, justify punitive damages, and promote obedience.
- Uniform Penal Rate:
- Most delayed EPF payments are 1% per month.
- Graded Lower Rates:
- 0.25% per month – Delay up to 2 months
- 0.50% per month – Delay up to 4 months
- Coverage Includes:
- Criminal cases that are pending under Section 14B.
- Unpaid penal damage orders
- Pre-adjudication defaults
- Legal Impact: The withdrawal or abatement of litigation will be a result of compliance by the use of Vishwas.
- Length: First rollout of 6 months, which can be extended.
- Liberalised Rules on EPF Withdrawal.
- Category Key Provisions
- Critical Needs Education, illness, marriage.
- Housing purchase, construction, repayment of the loan.
- Special Circumstances Calamity, unemployment.
- Limit on Withdrawal: 100 percent of balance in EPF (employee and employer share).
- Service Requirement: 12 months all categories reduced.
- Frequency Limits:
- Education – up to 10 times
- Marriage – up to 5 times
- Minimal Retirement Corpus: 25% retained.
- Special withdrawal cases should not require special consideration.
- Online and Process Reforms at EPFO.
- New Return Filing Module
- User Management Module
- Enhanced e-Office
- APR management system of SPARROW.
- The reforms and the Vishwas Scheme are intended to decrease the number of disputes, provide a faster settlement and make the EPFO system more welcoming to the members.
- One-line summary or MCQs of this required? I can prepare that too.
Month: Current Affairs - October 18, 2025
Category: CURRENT AFFAIRS NATIONAL AND STATE NEWS