Big news for EPFO members. The Employees’ Provident Fund Organisation (EPFO) is making strides to enhance banking services for its members. They are considering a plan that would allow members to withdraw funds directly from their Provident Fund accounts during emergencies, eliminating the need for any paperwork. The specific withdrawal limits are yet to be established.
EPFO officials are currently in discussions with the Ministry of Labor and Employment, the Ministry of Finance, the Reserve Bank, and various banks regarding this initiative. Reports indicate that the EPFO plans to begin developing its IT system 3.0 in late January or February.
Transformations in the IT system will align with recommendations from the Ministry of Finance, the Central Reserve Bank, and other banking institutions. EPFO has received numerous suggestions aimed at enabling members to withdraw a designated amount in emergencies without the hassle of paperwork.
One of the proposals suggests that instead of issuing new cards, EPFO should allow members to withdraw a fixed amount directly from their accounts in case of emergencies.
The entire process will function similarly to traditional banking. Members will be able to log in using their Universal Account Number (UAN) and password via the portal or app, facilitating immediate transfers to their bank accounts. Once the funds are transferred, members can access them through debit cards, net banking, or UPI, effectively allowing EPFO to operate like a bank.
To implement this, EPFO will need to connect all major banks with the UAN, simplifying the fund transfer process. The goal is to complete the IT System 3.0 by June, incorporating feedback from key financial institutions to ensure optimal improvements.
Issuing a separate card has been deemed unnecessary, as it could complicate the process.
