Uzbekistan Discusses Capital Market Development with Franklin Templeton

When unforeseen expenses arise, such as medical treatment, or when funds are needed for children's education, weddings, or housing construction, accumulations in the Provident Fund (PF) can be very useful. In this regard, the Employees' Provident Fund Organisation (EPFO) has simplified the rules for partial withdrawal from PF.

Under the new structure, eligible members can withdraw up to 75% of their PF balance, while the remaining 25% must remain in the account as a minimum balance. However, withdrawal limits, length of service, and frequency of withdrawal depend on the category of need. These new provisions for partial PF withdrawal came into effect on July 1, 2026. More detailed information on the rules and application submission can be found on the official EPFO website at https://www.epfindia.gov.in/.

Previously, there were numerous rules for partial PF withdrawal depending on specific needs, which complicated the understanding of eligibility and withdrawal conditions. Now, these provisions are divided into three main categories: urgent needs (illness, children's education, and marriage), housing needs (buying a house or plot, construction, mortgage repayment, and renovation), and special circumstances (partial withdrawal for other needs according to established provisions).

Furthermore, the minimum service period for partial withdrawal has been reduced to 12 months. The amount for withdrawal is calculated considering contributions from both the employee and the employer, as well as accrued interest.

According to the rules, a maximum of 75% of the relevant PF balance can be withdrawn, leaving a minimum of 25% in the account. It is important to note that the 25% remainder is not a fixed amount; it is determined based on your respective PF balance. The actual withdrawal amount will also depend on the conditions and eligibility of the need category.

Illness, education, and marriage fall under the category of urgent needs. To apply for withdrawal in these cases, one must have worked for at least 12 months. For illness, a maximum of 3 times is allowed within one financial year. For education, a maximum of 10 times is allowed during the entire membership period. Regarding marriage, a maximum of 5 times is allowed during the entire membership period. Maximum withdrawal limits and other conditions also apply to these needs, so mere compliance with requirements does not guarantee the ability to withdraw the entire amount in the account.

If you plan to use PF funds to purchase a house, plot, build a home, or repay a mortgage, a withdrawal mechanism is provided in the housing category. Withdrawal of funds for home repair, improvement, or renovation is also possible under established conditions. This requires a minimum of 12 months of service. A maximum of 5 withdrawals is permitted for housing needs throughout the membership period. However, meeting the requirements of the relevant scheme is necessary for the application to be approved.

Why is it necessary to keep 25% of the funds in the account? The purpose of PF is not only to provide funds in difficult times but also to build savings for life after retirement. Frequent withdrawals can lead to a reduction in the account balance by the time of retirement. This is why the requirement to maintain a minimum balance of 25% has been established. The funds remaining in the account continue to earn interest and may generate income from compound interest over time, helping to build retirement savings.

The rules have been simplified in the special circumstances category. In some situations, the member is not required to state the reason for withdrawal. Nevertheless, established conditions and withdrawal limits also apply to this category. In case of unemployment, a member can immediately withdraw up to 75% of their PF balance. The remaining 25% can be withdrawn after 12 months of unemployment. This differs from the general rules for partial withdrawal. Furthermore, a full settlement of funds may be permitted upon retirement and in some other specified circumstances, such as permanent disability, retrenchment, voluntary retirement, or permanent emigration. However, in each case, verification of compliance with the relevant rules is necessary.

Before withdrawing funds from PF, the following should be considered: although the possibility of withdrawing funds at the right time provides relief, it should not be used as a substitute for regular expenses. The interest and benefit from compound interest that will accrue on the withdrawn funds may decrease, affecting the total savings amount upon retirement. Therefore, when withdrawing funds for medical treatment or other urgent needs, both current needs and future savings must be taken into account. Before submitting an application, be sure to check the rules and eligibility requirements on the official EPFO website.

Initially, it was planned to introduce MDR on certain UPI transactions starting from October 15 for amounts exceeding 2000 rupees. However, due to the festive season, there were constant demands from traders to postpone this decision. Furthermore, protests against the introduction of UPI transaction fees were observed in some regions of the country. As a result, the government decided to postpone this until Diwali, and the final decision on the effective date will be made after this festival.

Tuesday saw that NPCI and the UPI Steering Committee decided to apply the MDR commission to 'person-to-merchant' (P2M) type transactions after Diwali, considering the festive period. Traders welcomed this decision, meaning that customers and sellers will not face issues when paying via UPI during the festive season.

During Diwali, there is a significant volume of sales in markets for clothing, electronics, jewelry, and other goods, which leads to an increase in the use of digital payments. Representatives of trade organizations and payment companies believed that implementing this system during the holidays could cause payment difficulties. Taking this into account, NPCI extended the deferral of this decision until Diwali.

MDR is a levy that the seller must pay to the bank and payment service provider for accepting digital payments. Previously, the government clearly stated that UPI payments for regular customers would remain completely free, and no fee would be charged from users or individuals (P2P — person-to-person).

Benefits for small merchants

For any transactions up to 2000 rupees, the MDR will be zero. Small and local street vendors or vendors in neighborhoods will not pay MDR. For large P2M transactions exceeding 2000 rupees, an MDR of 0.4% is proposed. For more expensive payments exceeding 75000 rupees, this commission is capped at a maximum of 300 rupees per transaction.

Special rates for specific services

It has been decided to provide discounts for certain types of usage, such as payment for railway tickets, electricity bills, fuel, and insurance premiums. For these services, the MDR will be a fixed 5 rupees for payments over 2000 rupees, instead of 0.4%. For the stock market (mutual funds, stock brokerage), a commission of 0.02% (maximum 300 rupees) has been set.

Since mass shopping occurs in the country during Diwali and Dhanteras, traders and their organizations (such as CAIT) demanded that this rule be postponed during the holiday sales period. Banks, fintech applications, and payment aggregators will require additional time to make changes to their systems and software.

The government states that the revenue generated from the small commission on selected UPI transactions will be used to strengthen the security of the digital payment infrastructure, enhance cybersecurity, and reinforce the technical base. NPCI will provide updates after Diwali. Diwali falls on November 8, 2026.

The Chairman of Aditya Birla Group, Kumar Mangalam Birla, noted that companies are adopting a more measured approach to investments in artificial intelligence (AI), focusing on tangible returns, productivity enhancement, and prudent capital allocation. He emphasized that the focus is shifting from an 'AI arms race' to an 'AI return race.'

Birla stated that a year ago there was a sense of fear regarding AI potentially 'swallowing' a company if one was not fully knowledgeable about it. However, this fear has now dissipated, and discussions have moved toward what benefits AI can bring to business, including enterprises within the Aditya Birla Group. He cautioned, however, against making AI investments solely due to the Fear of Missing Out (FOMO).

He added that the implementation approach will be more gradual than previously anticipated, given the substantial investments involved. The Group is studying the impact of AI across its entire structure, and specific areas yielding results have already been identified, such as improving customer interfaces, increasing production efficiency, and boosting net interest margins in the Group's financial business.

Furthermore, Birla pointed out that for a large, diversified group to grow, effective capital allocation, consideration of geopolitical changes, and maintaining employee enthusiasm are crucial. He noted that growth is impossible without constant demands on capital. Since the Group is a global organization, any significant world event will inevitably affect it.

Aditya Birla Group, led by Kumar Mangalam Birla, operates in over 20 sectors across 41 countries on six continents, employs over 2.27 lakh people, and has more than 600 manufacturing units. The Group's financial results for FY26 were approximately $72 billion in revenue and $8.5 billion in EBITDA.

Birla also stressed the critical importance of maintaining high morale in a people-driven organization, as the lines between important and urgent become blurred. He believes that people are the decisive factor, and maintaining their energy and engagement is no less important a task.

To ensure business sustainability, Birla cited continuous learning and operational stability as key prerequisites for achieving scale at low cost. The Group's manufacturing enterprises aim to be in the bottom tenth percentile of the global cost curve. Specifically, the Group's cement capacity reached 200 million tons this year, making it the largest cement producer outside of China, and the company added 2 gigawatts of renewable energy capacity to its cement business. He concluded that systematic movement of knowledge and personnel between different units helps maintain the pace of business, and best global practices adopted in some units set a global standard.