The Employees’ Provident Fund Organisation (EPFO) is gearing up to launch its upgraded EPFO 3.0 platform in the coming weeks. Central Labour Minister Mansukh Mandaviya had earlier indicated that the new system would go live between May and June 2024, offering smoother services for 9 crore EPF subscribers.
Here’s everything you need to know about the upcoming EPFO 3.0 and how it will benefit users.
Key Features of EPFO 3.0
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Faster Claim Settlements – The upgraded IT infrastructure will enable auto-claim processing, reducing delays.
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ATM-Based Withdrawals – Subscribers can withdraw EPF funds directly from ATMs after claim approval, eliminating the need to visit EPFO offices or employers.
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Easy Account Corrections – Digital corrections in EPF accounts will become simpler.
How ATM Withdrawals Will Work
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Once a claim is approved, subscribers will receive an SMS notification.
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They can then withdraw their EPF money from any ATM without additional paperwork.
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EPFO aims to reduce claim processing time significantly with the new system.
Experts Advise Caution on EPF Withdrawals
While ATM withdrawals offer convenience, financial experts warn against frequent withdrawals from EPF accounts. Since EPF provides 8.25% interest (higher than most fixed-income schemes), premature withdrawals can hurt long-term savings and retirement security.
EPFO’s Competitive Interest Rate
EPFO recently retained the 8.25% interest rate for 2023-24, making it one of the best fixed-income investment options available. Subscribers should consider this before opting for early withdrawals.