EPFO- EPFO subscribers will soon be able to withdraw their Employees’ Provident Fund (EPF) directly from their accounts through ATMs or other methods like UPI after linking their bank accounts with EPF. The Labour Ministry is working on a project that will enable people to withdraw a portion of their EPF through their bank accounts using various methods like UPI or ATM debit cards, a top official said.
Sources also said that there were some software challenges in implementing this system, which are being addressed. Currently, Employees’ Provident Fund Organisation (EPFO) members have to apply for withdrawal claims to get their EPF money. This is very time-consuming. Under the auto-settlement mode, withdrawal claims can be claimed electronically within three days of filing the application form, without any manual intervention.
Auto-settlement mode limit increase:
The limit of this auto-settlement mode was increased from Rs. 1 lakh to Rs. 5 lakh on Tuesday. This will enable a large number of EPFO members to access their EPF money within three days for illness, education, marriage and household needs. EPFO, which has over 7 crore members, has introduced online auto-settlement of advance claims to provide quick relief to those facing financial difficulties during the COVID-19 pandemic.
However, all members have to file claims to access their own EPF. With over 5 crore claims related to EPF withdrawal being processed every year, a new system is being developed to reduce this time-consuming process and reduce the burden on EPFO.
The EPFO cannot allow its members to withdraw money directly from their EPF accounts as it does not have any banking licenses, however, the government wants to improve EPFO services on par with banks. Once this new system comes into effect, a portion of the PF fund can be deposited and the bulk withdrawn through various methods like UPI or ATM debit card.