New Delhi: A significant relief is on the horizon for those employed concerning their Provident Fund (PF). There will no longer be a need to wait for claims and settlements to access PF funds. The Employees’ Provident Fund Organization (EPFO) is enhancing its digital infrastructure. As part of this upgrade, account holders in EPFO 3.0 will soon be able to withdraw PF money via ATM and UPI. This means that in the future, if necessary, PF funds can be directly accessed from ATMs for expenses such as medical bills, children’s education, or weddings.
However, this feature has not yet been made available to all account holders. Development and testing of the system are currently in progress.
How will this feature function?
Under the proposed system by EPFO, PF accounts will be connected to the banking network and ATM/UPI systems. The organization intends to collaborate with the National Payments Corporation of India (NPCI). This system will automatically verify the eligibility of account holders and the amounts they can withdraw.
Eligible members will then have the ability to withdraw funds from the ATM using their ATM card. Withdrawals can also be conducted through UPI or the EPFO app.
What is the maximum EPF amount that can be withdrawn via UPI?
According to current regulations, a subscriber must keep at least 25% of their EPF balance in their account. For specific needs, including essential expenses like education, marriage, and housing, a subscriber can withdraw up to 75% of their EPF balance. The remaining 25% stays in the account and continues to earn tax-free interest.
You can access PF funds in just minutes.
With the introduction of this new feature, EPFO subscribers will no longer face delays in withdrawing their PF funds. Most importantly, this new EPFO feature will connect the UAN portal with users’ UPI accounts, potentially streamlining and expediting the PF withdrawal process compared to before.
When will we get the benefit of this facility?
According to the report, this feature is expected to be launched by the end of December. However, it’s worth noting that this process is still being tested, and a final launch date has yet to be announced. However, once this process begins, millions of employees will benefit, making their work much easier.