The present monetary nervousness is seen as a direct byproduct of the COVID-19 pandemic. The virus has created uncertainty on a number of fronts each for people and companies. Individuals are in misery and have put their heads within the sand about their monetary future.
To reduce the COVID-19 affect and mitigate the disaster and chaos state of affairs, Finance Minister Nirmala Sitharaman had on March 26, introduced a bundle of 1.70 lakh crore to assist PF account holders dealing with financial disaster throughout Covid-19.
Underneath the brand new bundle – Pradhan Mantri Garib Kalyan Yojana- a brand new sub-para (3) was added to Para 68L of the EPF Scheme, 1952, permitting the PF account holders to withdraw cash equal to 75 per cent of the account quantity or three months dearness allowance (whichever is much less). The account holders have been exempted from re-crediting the account after withdrawing cash.
In the meantime, this led to an increase within the withdrawal of cash from the PF accounts. In accordance with the Staff Provident Fund Organisation (EPFO) of the Ministry of Labour, about 13 lakh account holders have availed this facility as far as Rs 4,684.52 crore has already been paid on claims.
In accordance with the Ministry of Labour and Employment, the variety of withdrawals from exempted PF trusts has additionally elevated. In accordance with the information on April 27, a complete of 79,743 exempted PF belief account holders withdrew Rs 875.52 crore from the accounts.
Furthermore, 54,641 account holders of 222 non-public institutions withdrew Rs 338.23 crore, whereas 24,178 beneficiaries of 76 public sector institutions withdrew Rs 524.75 crore from their accounts, reported a information company.
However, an RTI report obtained by activist Saket Gokhale claimed that Indian banks technically wrote off Rs 68,607 crore due from 50 prime wilful defaulters. The RBI mentioned that Rs 68,607 crore comprising excellent and the quantities technically/ prudentially written off until September 30, 2019, mentioned an IANS report.
Nonetheless, quickly after the report, Congress slammed the federal government for writing off loans. Congress chief spokesperson Randeep Surjewala charged the BJP with serving to the defaulters and mentioned, “Till April 24, Rs 68,607 crore have been written off by the government. The Prime Minister cannot evade this question by keeping silent.”
“As much as Rs 8,048 crore have been written off of Mahul Choksi and Nirav Modi. Another diamond merchant Jatin Mehta’s Rs 6,048 crore too have been written off, and so is the case with Kingfisher’s Vijay Mallya. Similar is the case with the relations of these defaulters,” mentioned Surjewala.
Focusing on the federal government on freezing the Dearness Allowance (DA), the Congress mentioned such write-offs have come to mild at a time when DA of the Central authorities workers and the Military personnel has been freezed citing COVID-19 affect.
The occasion additional alleged that within the final 5 and a half years, the federal government had written off Rs 5.10 lakh crore of the default cash until September 2019.
Nonetheless, the ruling-BJP later clarified that there isn’t a lower in DA and dearness reduction (DR), and the extra hike over 17% presently paid shall be reinstated prospectively, efficient Jan 2020.
“There is no cut in DA and DR. It’s a temporary HOLD on the additional HIKE, which will be reinstated. DA and DR at the current rate, the highest ever rate at 17% brought by the Modi government, will continue to be paid,” the ruling-BJP mentioned in a tweet.
“When the government decides to release the instalments of DA and DR from 1 July 2021, the effective rates from January 2020, July 2020 and January 2021 will be restored prospectively and will be subsumed in the cumulative revised rate effective from 1 July 2021,” the occasion added.