EPFO Update: Starting in early 2025, EPFO subscribers will enjoy the convenience of withdrawing their PF savings directly from ATMs.
Dear Lykkers, labour Ministry Secretary Sumita Dawra confirmed that the Labour Ministry is upgrading its IT systems to provide enhanced services to workers in India. As a result, EPFO subscribers will have hassle-free access to their provident funds via ATMs.
What the Labour Secretary Said
Improved IT Systems: The Labour Ministry is enhancing its IT infrastructure to provide better services for India's workforce.
ATM Withdrawals: EPFO subscribers will be able to withdraw their provident funds directly from ATMs starting next year.
Streamlined Claims: Claimants, beneficiaries, or insured individuals will be able to access their claims conveniently through ATMs, with minimal human intervention.
Ongoing Upgrades: Significant improvements to systems are expected every two to three months.
How the PF Withdrawal from ATMs Will Work
Specialised PF Withdrawal Cards: The new system will introduce PF withdrawal cards that operate like traditional bank ATM cards. Withdrawals will be capped at 50% of the PF balance to ensure funds remain available for emergencies.
Authentication Measures: Withdrawals will require multi-factor authentication, including a one-time password (OTP) sent to the mobile number linked to the account, ensuring security and compliance with EPFO regulations.
Bank Integration: Subscribers will retrieve funds using their registered UAN (Universal Account Number) or linked bank accounts.
Benefits of PF Withdrawals via ATMs
Enhanced Accessibility: Subscribers can withdraw funds from ATMs without visiting EPFO offices or navigating complex procedures.
Faster Transactions: Convenient ATM withdrawals eliminate delays associated with traditional PF claims, ensuring swift access to funds during emergencies.
24/7 Availability: ATMs provide round-the-clock access to PF funds, offering flexibility to withdraw anytime, including weekends and holidays.
Improved Efficiency: Upgraded IT systems will enable smoother transactions, minimize errors, and enhance reliability in the withdrawal process.
Financial Security: Immediate access to funds through ATMs strengthens financial flexibility, especially during medical emergencies or unforeseen expenses.
Current PF Withdrawal Rules
During employment, employees can withdraw a portion of their Provident Fund (PF) balance through the EPFO portal for specific reasons, depending on their years of service and the purpose of withdrawal. Key categories include:
Housing: Up to 90% of the PF balance can be withdrawn after completing five years of service for purchasing or constructing a house.
Medical Emergencies: Members may withdraw an amount equivalent to six months' basic wages and dearness allowance, or their employee share with interest, whichever is lower.
Education or Marriage: After seven years of service, individuals can withdraw up to 50% of their employee share with interest for education or marriage-related expenses.
Retirement: Employees aged 54 and above can withdraw 90% of their balance within one year of their retirement date.
These withdrawal options are designed to support financial needs during significant life events while ensuring savings are preserved for future requirements. The government is also focused on expanding social security measures for gig and platform workers. Under the Code on Social Security, 2020, these workers can expect additional benefits, including medical insurance, disability support, and access to provident funds.
