New Delhi. The Employees’ Provident Fund Organisation (EPFO) is set to roll out a major change for its millions of account holders. With the launch of the new scheme, EPFO 3.0, withdrawing money from your PF will be as simple as taking cash from a bank account. For the last 60 years, people have had to deal with tedious paperwork and run around to different offices to access their PF funds, but that’s about to change.
Key Takeaways
Quick Read- Major changes in the rules, now only 3 categories
- How much money must be kept in the PF account?
The most exciting news with EPFO 3.0 is that you can now withdraw your PF funds directly via ATM or UPI. In the past, withdrawing PF required filling out an online form and waiting for your company’s approval, which could take a long time. But with this new system, you can instantly withdraw up to 75% of your PF balance through UPI.
To make this happen, the EPFO is working with the National Payments Corporation of India to facilitate this through apps like Google Pay and PhonePe. Additionally, the EPFO will issue a special PF ATM card to each member, allowing them to withdraw up to 50% of their balance from any ATM.
Major changes in the rules, now only 3 categories
This new system not only alters the withdrawal method but also simplifies the entire process. Previously, there were 13 different categories for PF withdrawals, which will now be cut down to just three. The biggest relief is that the auto-settlement limit, which is the amount processed without any human intervention, has been raised to Rs 5 lakh. This means that claims up to Rs 5 lakh will be automatically settled by the system. In most cases, you won’t even need to get approval from your company.
How much money must be kept in the PF account?
To make sure your retirement savings aren’t depleted in this rush to withdraw funds, the EPFO has put in place an important rule. Whether you take money out via ATM or UPI, you must always keep a minimum balance of 25% in your account.
You won’t be able to withdraw your entire PF balance this way. For security, an Aadhaar-based OTP system will be used, ensuring the entire process is completed within 24 hours. The government aims to implement this entire system by mid-2026. This will most benefit workers and employees who are not familiar with the internet or who need immediate cash in an emergency.
