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EPFO Divides The Room
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Good Morning. For most of us, the PF (Provident Fund) isn’t just another deduction; it’s our go-to safety net for the future. So, it’s no wonder the EPFO’s new draft rules on withdrawals have left many people unsure about what’s next. Like any big change, this one comes with its share of pros and cons, and experts are already weighing in on what it could mean for your money.
Indian stock exchanges ended lower on Tuesday, with the BSE Sensex slipping 0.18% to 84,628.16 (down 150.68 points) and the NSE Nifty 50 easing 0.11% to 25,936.20 (down 29.85 points).
Meanwhile, in this week’s Build on Blockchain, how the technology can be a game-changer for pharmaceuticals.
DECODE THE NEWS
Saving By Force? EPFO’s New Rules Divide Experts, Workers
What?
In 2017, Pune resident Makrand Boite had to withdraw his entire PF (provident fund) corpus to fund the medical expenses arising out of a serious heart surgery.
“I had needed the money back then, and it was necessary. I wasn’t worried about savings back then,” he said. Fortunately, the company he worked for strived hard to provide the much-needed documentation quickly, and he was able to withdraw the money without many hiccups within a short time.
For people like Boite, the new Employee Provident Fund Organization’s (EPFO) draft regulations might create trouble. The regulations have created a social media storm, with experts weighing on both sides.
Why?
Among the revised rules, the EPFO now mandates that employees can withdraw only up to 75% of their PF corpus at any given time. The rest of 25% will be ‘held’ by the government for posterity. In the government’s own words, “25% of the contribution needs to be retained to ensure respectable corpus”.
For many Indians, PF becomes a crutch that they rely on. Rahim Farzad, an employee of a telecom company in Trichy, withdrew his PF for the first time seven years ago. He withdrew over 70% of his corpus after 15 years of working, which came to around Rs 14 lakh, for the construction of his house.
What Now?
While it would seem that employees like Boite and Farzad might be in trouble as per the new regulations, this might not be the case. According to the new rules, 75% of both employee and employer contributions towards PF can be withdrawn, resulting in a larger withdrawal amount.
Most financial experts too back the new rules. “There are good and bad provisions in the regulations. Most people treat EPFO like an SB (savings bank) account and withdraw savings and fail to save for later on. So, the 25% rule doesn’t sound as bad,” said Abhishek Kumar, founder and CEO of Sahaj Money.
THE CORE POLL
Should the government decide how much of your PF you can touch? |
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BUILD ON BLOCKCHAIN
Every Pill You Take… Blockchain’s Watching You
What?
On October 24, shares of a little-known American company, Wellgistics Health, jumped 260% — from $0.40 to $1.46 — in the first hour of trading on Nasdaq before ending the day with a gain of 185%.
The trigger was that the company had signed an agreement with Datavault AI to use PharmacyChain, a blockchain-based system that tracks medical prescriptions from the moment a doctor writes them to the time a patient collects the medicine.
The stock of Datavault, which owns PharmacyChain, also ended the day with a gain of 52%.
Why?
While there is an obvious business angle to the news, as investors were excited by this unique partnership, the story also served as a reminder of the transformational potential of blockchain in changing the way we do business or avail services.
Blockchain is like a notebook accessible by multiple parties. Each party can make an entry in the notebook at different stages. But once it’s there, you cannot change or delete it.
Using this powerful technology, we can change the way we receive healthcare — right from the time of seeing a doctor to getting the right medicines in the correct doses.
Can this technology solve India’s problem of fake or poor-quality medicines?
Brought to you in partnership with Algorand India.
CORE NUMBER
4%
That’s India’s industrial output growth in September 2025, unchanged from August, according to the Ministry of Statistics and Programme Implementation (MoSPI).
Why It Matters: The Index of Industrial Production (IIP) holding firm at 4% suggests resilience amid global uncertainty. Manufacturing, the backbone of industrial growth, continued to prop up the index even as mining output dipped.
By The Numbers:
Manufacturing: +4.8%, led by electrical equipment (+28.7%), motor vehicles (+14.6%), and basic metals (+12.3%).
Electricity: +3.1%
Mining: –0.4%
Infrastructure and construction goods jumped 10.5%, consumer durables 10.2%, and capital goods 4.7%. But consumer non-durables slipped 2.9%, reflecting soft demand.
FROM THE PERIPHERY
HDFC Bond Probe.
HDFC Bank, India’s largest private-sector lender, has placed two senior executives on gardening leave amid an internal probe into alleged mis-selling of Credit Suisse’s Additional Tier 1 (AT1) bonds, Bloomberg reported citing sources. The action, taken over the past few months, follows customer complaints about disputed trades. An internal report is expected soon.
Setup: Responding to Bloomberg’s queries, an HDFC spokesperson said the bank has “not come across any instances of mis-selling till now,” adding that it takes any reputational issue “with utmost seriousness.”
The Backstory: The move comes after a Dubai regulator flagged lapses in how HDFC Bank offered financial services to local clients outside the Dubai International Financial Centre, resulting in a temporary ban on onboarding new customers there. Sources said the regulator’s findings prompted the bank to place the executives on leave. AT1 bonds, high-yield hybrid instruments created after the global financial crisis, are restricted to professional investors in India.
IOC Defends Russian Imports.
Indian Oil Corp (IOC), the country’s largest refiner, said it will continue buying Russian crude as long as purchases comply with sanctions. “We are absolutely not going to discontinue buying Russian crude. It’s the entities and shipping lines that are sanctioned, not the oil,” said Anuj Jain, finance director, during a post-earnings call, Reuters reported.
Flashpoint: Several Indian refiners, including Reliance and BPCL, have reportedly paused new Russian orders after fresh US sanctions on major producers Lukoil and Rosneft. IOC, however, plans to keep buying through non-sanctioned entities and has issued a tender for oil supplies.
What's Next? India remains Russia’s top crude buyer since 2022, importing about 1.9 million barrels per day this year. To replace affected shipments, refiners are turning to spot markets and exploring alternatives like Iraq’s Basrah grades and U.S. West Texas Intermediate crude.
Flying with Sanctions.
Hindustan Aeronautics Ltd (HAL) has signed a memorandum of understanding with Russia’s United Aircraft Corporation (UAC) to jointly manufacture the SJ-100 passenger jet in India, the country’s first civil aircraft project.
Fast Facts: That’s despite the fact that the US, EU and the UK have sanctioned the majority Russian government-owned UAC, for its role in the war in Ukraine. This could complicate India’s relationship with its Western partners further; already the US has levied an additional 25% tariff on India for its Russian crude oil imports.
Pivot: But, HAL argues that this collaboration advances India’s Aatmanirbhar Bharat goal in aviation, estimating domestic demand for over 200 regional jets in the next decade.
Amazon Readies Layoffs.
In a note to staff, Amazon’s senior vice president, Beth Galetti, said the company plans to cut roughly 14,000 roles, which will make Amazon “even stronger” by reallocating resources to its biggest priorities and customer-focused initiatives. Earlier in the day, Reuters had reported, citing sources, that Amazon is set to cut around 30,000 corporate jobs starting Tuesday, in what could be its largest layoffs since 2022. The company’s corporate workforce stands at nearly 350,000.
Context: Amazon cited the rise of AI as a key driver for the restructuring, calling it “the most transformative technology we've seen since the Internet” and noting that it enables faster innovation. Over the past two years, Amazon has implemented smaller cuts across divisions such as devices, communications, and podcasting.
Setting: Employees affected by the layoffs will generally have 90 days to apply for internal roles, with recruiting teams prioritising internal candidates. Those unable or unwilling to secure new positions will receive transition support, including severance, outplacement services, and continued health benefits.
PODCASTS
Why Is The Global Economy Growing?
On Episode 712 of The Core Report, financial journalist Govindraj Ethiraj talks to Madhavi Arora, Lead Economist at Emkay Global Financial Services as well as Chokkalingam G, Founder at Equinomics Research Pvt Ltd. For our Build on Blockchain segment we feature Suraj Teja, Founder at Sow & Reap.
Why is the global economy growing?
Amazon’s job cuts and what they mean
Why banking stocks are doing well and the big bet on PSU banks
What explains India’s upward growth projections?
Build on Blockchain
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