EPFO 3.0: Significant news has emerged for millions of employees who withdraw funds from their Provident Funds. The EPFO is preparing to introduce a major facility for its more than 300 million (30 crore) account holders. Very soon, PF account holders will be able to withdraw money directly from their PF accounts using an ATM card. According to media reports, advance claims of up to ₹5 lakh—for needs such as weddings or purchasing a home—could be settled within 3 to 4 days. However, final official confirmation from the EPFO regarding this proposed facility is still awaited.
Withdrawals via UPI
The EPFO is set to overhaul its entire system and is preparing to launch ‘EPFO 3.0’. The organisation has already begun testing a facility for PF withdrawals via UPI, in collaboration with select banks.
How will the ‘PF ATM Withdrawal’ system work?
Under this new facility, a PF account will be linked directly to a bank debit/ATM card or the Unified Payments Interface (UPI):
Centralised IT System: EPFO 3.0 will operate along the lines of a ‘core banking solution’, where a member’s eligibility and claims can be auto-verified in real-time.
PF funds are accessible in minutes.
A key feature of this new facility is that it will link the UAN portal to the user’s UPI account. The PF withdrawal process will become significantly simpler; users will no longer have to wait up to 15 days to access their PF funds.
How much can be withdrawn?
Limit: A daily limit will be set for ATM withdrawals from a PF account, restricted to the amount permissible under eligible ‘advances.’
25% Balance Mandatory: Under the EPFO’s revised rules, account holders must ensure that at least 25% of their total PF balance remains untouched to safeguard their future retirement security. Until an official announcement is made by the EPFO, the launch date cannot be considered final.