EPFO to Allow PF Withdrawals via ATM & UPI – Here’s How It Will Work

The Employees’ Provident Fund Organisation (EPFO) is planning a major upgrade that will allow its members to withdraw funds directly from their Provident Fund (PF) accounts using ATMs and UPI. This move aims to simplify the PF withdrawal process and provide real-time access to retirement savings, eliminating the need for lengthy claim procedures.

What’s the New Proposal?

According to a PTI report, the Labour Ministry is developing a system where EPFO members can withdraw a portion of their PF balance via linked bank accounts using ATM debit cards or UPI. Once implemented, this facility will remove the requirement of filing online or offline withdrawal claims, making the process instant and hassle-free.

However, members will not be allowed to withdraw their entire PF balance—a certain portion will remain locked for retirement savings.

How Will the New System Work?

Currently, EPFO is not a licensed bank, so it cannot directly offer ATM-based withdrawals. Under the existing system, even partial withdrawals require filing a claim, which can take up to three days despite the auto-settlement feature introduced during COVID-19.

The proposed system will integrate with bank accounts, allowing EPFO members to access funds without manual claims. Software upgrades and backend integration are underway to enable this seamless process.

When Will ATM Withdrawals Start?

Central Labour Minister Mansukh Mandaviya stated that PF accounts are being linked to employees’ bank accounts for this facility. While no official launch date has been announced, media reports suggest the new system could go live as early as July 2025.

Current PF Withdrawal Process

At present, EPFO members must file a claim application for withdrawals. Even the auto-settlement system, introduced during the pandemic, requires a claim request, though it is faster than manual verification. Recently, the government increased the auto-settlement limit from ₹1 lakh to ₹5 lakh, enabling quicker access to larger sums without manual intervention.

Other Key EPFO Reforms

EPFO has introduced several reforms to enhance user experience, including:

• No need to upload cheque/passbook photos for online claims.

• Employer verification removed for bank detail updates.

• Aadhaar-based verification to streamline the process.

This move marks a significant shift towards making PF withdrawals as easy as accessing a regular bank account, ensuring faster and more convenient access to hard-earned savings.

Fact Check:

• EPFO has not yet confirmed an official launch date for ATM/UPI withdrawals.

• The auto-settlement limit was increased to ₹5 lakh on 24th June 2024.

• The new system will only allow partial withdrawals, keeping retirement savings secure.

Stay tuned for official updates from EPFO and the Labour Ministry!