The Employees’ Provident Fund Organisation (EPFO) is set to undergo significant transformations as it prepares for EPFO 3.0 in the upcoming year. Reports indicate that this new version will allow employees to withdraw their Provident Fund (PF) directly from ATMs. To facilitate this, EPFO is enhancing its IT infrastructure. If all goes according to plan, account holders may receive this withdrawal card by June 2025. There is also some uncertainty regarding the withdrawal limits, which have been established to ensure that employees can save for the future. Here’s an overview of the anticipated changes.
What is the government’s strategy?
The government is reportedly contemplating a substantial decision concerning EPFO. Media sources suggest that there may be an increase in the PF contribution limit as part of the EPFO 3.0 initiative. Additionally, discussions are underway regarding the introduction of an EPFO withdrawal card, which would enable members to access their PF funds directly from ATMs. This new regulation could be implemented by June 2025.
How will it function?
Government agencies are urging the administration to streamline the PF withdrawal process. In response, the introduction of the EPFO withdrawal card is being considered. This card is expected to operate similarly to an ATM card, allowing users to withdraw funds from their PF accounts at ATM machines.
However, there will be a specified limit on withdrawals to encourage savings for the future. The implementation of this new rule is anticipated by June 2025.
