Good news for crores of EPFO members. You’ll soon be holding an EPFO ATM card! EPFO announced this initiative a while back to make withdrawals easier, but the start date was a mystery until now. According to sources from the Labor Ministry, you can expect this to roll out in June 2025. Starting then, EPFO will issue withdrawal cards to all account holders, and they’ll function just like regular ATM cards.
To get ready for this, EPFO is enhancing its IT infrastructure. However, details about the withdrawal limits or how much you can take out at once are still unclear. Here’s what you need to know about the upcoming changes.
Labor and Employment Minister Mansukh Mandaviya mentioned that the new EPFO 3.0 mobile app is set to launch by May-June 2025. Once this app is available, subscribers will be able to withdraw their PF money instantly, eliminating the current wait time of 7 to 10 days for online claim settlements.
So, what’s EPFO 3.0 all about?
The government aims to launch the EPFO 3.0 app by May-June 2025. This app will make it much easier for EPFO subscribers to check their PF status, transfer funds, or settle claims. Right now, withdrawing PF money can be quite time-consuming and requires filling out various documents.
What’s a PF account?
A PF account is something that every government or private employee has. In India, millions of workers are linked to the EPFO. Each month, 12% of an employee’s basic salary goes into their PF account, and the employer matches that contribution.
How can you take out PF money from an ATM?
With the new system, the EPFO will provide a special ATM card to its members, which will be connected to their PF account. This means subscribers can directly withdraw their PF funds from ATMs using this card.
Will there be a limit on PF withdrawals with EPFO 3.0?
With the rollout of EPFO 3.0, there might be a cap on withdrawals, allowing employees to take out only 50% of their total deposit. So, you won’t be able to withdraw all your PF money at once. Those eligible can use the EPFO ATM service.
What other updates has EPFO introduced this year?
Starting January 1, 2025, EPFO subscribers can withdraw their pension from any bank, which is a big change from before when they had to go through a specific bank. This new option will greatly help those who worked in different cities and have now returned home, making the pension verification process much simpler through digital means.
What’s the current limit for withdrawing money from your EPF account?
The EPFO has raised the cap on advance withdrawals from PF accounts. Under the new guidelines, EPFO members can now take out up to Rs 1 lakh during a medical emergency, an increase from the previous limit of Rs 50,000.
To access this benefit, members will need to provide documents such as KYC, proof of eligibility for the claim, and their bank account information.