New Delhi: EPFO 3.0 is set to prove to be a major boon for PF subscribers. In fact, several special features are soon to be introduced for PF subscribers, and discussions regarding these are currently gaining momentum. Under this initiative, subscribers will be provided with the facility to withdraw their PF funds via ATMs and UPI. Furthermore, account holders are slated to receive various other types of services within the PF framework.
Key Takeaways
Quick Read- Essential Needs (Medical, Education, Marriage)
- Housing (Purchase, Construction, Loan Repayment)
- Special Circumstances (Job Loss, Permanent Disability)
These new EPFO features will offer significant assistance to PF subscribers. Account holders will be able to withdraw cash using ATMs and UPI, thereby ensuring a hassle-free experience.
Key highlights
The 75% Rule: Subscribers will be permitted to withdraw up to 75% of their total balance (including employer and employee shares) for essential needs.
Mandatory Retirement Buffer: To ensure long-term security, a 25% mandatory balance must remain in the account at all times.
Simplified Categories: The complex web of 13 withdrawal reasons has been collapsed into 3 streamlined categories:
- Essential Needs (Medical, Education, Marriage)
- Housing (Purchase, Construction, Loan Repayment)
- Special Circumstances (Job Loss, Permanent Disability)
What is EPFO 3.0?
Under EPFO 3.0, PF account holders will be granted the facility to withdraw funds from their accounts using ATMs. To facilitate this, dedicated PF ATM cards may also be issued to account holders. Consequently, subscribers will be able to withdraw their PF funds through any ATM terminal.
Additionally, account holders will be provided with the option to link their PF accounts via UPI. Subscribers will also be able to transfer their PF funds directly to their bank accounts through the PF portal or the UMANG app.
Withdrawal Limits
Did you know that a specific withdrawal limit will be established for withdrawing funds from a PF account via ATMs or UPI? Subscribers will be permitted to withdraw between 50% and 75% of their PF balance using UPI or ATMs. It appears unlikely that this limit will be increased in the future. Meanwhile, all PF subscribers are eagerly awaiting official confirmation regarding these developments.
When is EPFO 3.0 Expected to Launch?
For your information, reports were suggesting that EPFO 3.0 would launch in April; however, a delay now appears probable. According to a recent report, a new mobile application is expected to be launched shortly. It is through this application that subscribers will be able to initiate cash withdrawals via UPI.
