SEPTEMBER, 20249EPFO RAISES WITHDRAWAL LIMIT TO 1 LAKH FOR PERSONAL NEEDSMERCEDES-BENZ TO ASSEMBLE EQS SUV IN INDIA, EXPANDING EV PRODUCTIONThe Employees Provident Fund Organisation (EPFO) subscribers are now allowed to withdraw up to 1 lakh at a time for personal financial requirements, instead of the earlier limit of 50,000, as stated by Union Labour Minister Mansukh Mandaviya, as per sources.According to the minister, the labor ministry has made several adjustments to the EPFO's procedures, such as a updated guidelines and a new digital platform, in order to improve flexibility and responsiveness and reduce inconvenience for subscribers. Furthermore, employees who have worked less than six months in their current position can now withdraw funds, which is different from the previous rule."People often turn to their EPFO savings to meet expenses such as weddings and medical treatment etc. We have enhanced the withdrawal limit to 1 lakh at a time," Mandaviya said on the occasion of the government's 100 days in office.The prior withdrawal cap was raised as it had become obsolete due to evolving consumption expenses. Provident funds offer retirement income to over 10 million workers in the formal sector and often serve as the main source of long-term savings for many employees. The salaried middle class closely watches the EPFO's savings interest rate, which is fixed at 8.25 percent for FY24, as a significant benchmark. German luxury carmaker Mercedes Benz has firmed up plans to locally assemble a second electric vehicle in the country enthused by steady demand for these cars. India will be the only market outside of the United States to locally assemble the EQS SUV 580. Completely built-up units (CBU) attract customs duty of up to 110 percent, compared to 15 percent levied on vehicles assembled locally from knocked down kits (CKD).Mercedes Benz India Managing Director Santosh Iyer told ET, "There is currently no other option for emission free mobility than electrification. And we need to aid penetration by introducing electric cars at varied price points to our customers. The EQS SUV 580 will be the second electric vehicle that we assemble locally, which has helped us to price it competitively." The EQS SUV 580 is priced at Rs 1.41 crore.With the launch of the EQS SUV 580 the company now has half a dozen EVs for sales in the country. "About 55 percent of all cars sold in India are now SUVs. So it was only logical for us to introduce an electric SUV. We expect penetration of electric vehicles in our portfolio to increase steadily with these launches", Iyer informed.Overall, the company has seen penetration of electric vehicles in its total sales double to 5 percent in the first half of the ongoing calendar year, over CY2023. EV sales for the company grew by 60% in this period, when total volumes rose 9 percent to 9,262 units. TOP STORIESSEPTEMBER, 20249
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