- EPFO subscribers may soon withdraw PF money via UPI apps and ATMs under EPFO 3.0
- PF withdrawals currently require claim submission and processing time from EPFO
- EPF-linked ATM cards will allow withdrawals of 50% to 75% of eligible PF balances
Employees' Provident Fund Organisation (EPFO) subscribers may soon be able to withdraw their Provident Fund (PF) money through UPI apps and ATMs under the upcoming EPFO 3.0 digital platform.
Currently, PF withdrawals usually require members to submit claims and wait for processing. Once the new system is launched, eligible subscribers may be able to transfer PF money directly to their Aadhaar-linked bank accounts through UPI or ATM-based services.
The facility is being developed in partnership with the National Payments Corporation of India (NPCI), which operates India's UPI network. This makes the process quicker, simpler and more convenient.
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How will PF withdrawal through an ATM work?
EPFO is expected to issue EPF-linked ATM cards to subscribers. These cards will work similarly to regular debit cards and allow members to withdraw eligible PF funds from ATMs.
How much PF money can be withdrawn?
According to the proposed framework, members may be allowed to withdraw between 50% and 75% of their eligible EPF balance. However, the final withdrawal limits and conditions will be announced when the facility is officially launched.
A portion of the savings will continue to remain locked. At least 25% of the total PF corpus is expected to stay in the account as a retirement fund.
Other key changes
The government has also increased the auto-settlement limit for PF claims from Rs 1 lakh to Rs 5 lakh.
Members may be able to use Face Authentication Technology (FAT) through the UMANG app to verify their identity instead of relying on multiple documents. The upgrade is also expected to offer faster and simpler UAN activation, easier access to the PF passbook online and quicker correction of Aadhaar-linked details.
EPFO believes that after the rollout of EPFO 3.0, many claims could be settled within a few days, helping subscribers access their money more quickly than under the current system.
Is the facility available?
The government has confirmed that testing of the new system has been completed. Union Labour Minister Mansukh Mandaviya has said that the rollout announcement will be made soon. Subscribers will be able to use these services only after EPFO announces the launch date and operational guidelines.
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