EPFO Amount withdrawals With ATM: Working professionals in India are familiar with EPFO (Employees Provident Fund Organization) and PF (Provident Fund). But did you know the government is planning to launch a new scheme allowing withdrawals from PF accounts just like using an ATM card? Here’s what you need to know.
What is EPFO 3.0?
The EPFO 3.0 scheme is the latest initiative from the central government. Following the launch of PAN 2.0, this new scheme aims to introduce subscriber-friendly features, making PF account management and withdrawals more convenient for employees.
According to a report by CNBC Awaaz, EPFO may remove the 12% limit on employee contributions to PF. Additionally, under the EPFO 3.0 scheme, PF account holders may soon receive a new ATM-like card that will allow them to withdraw money directly from their PF account.
When Will the Scheme Be Implemented?
EPFO 3.0 is expected to be operational by May-June 2025. This initiative will allow customers to withdraw PF amounts directly through ATMs, simplifying the process. The Ministry of Labor is reportedly working on issuing cards to facilitate PF withdrawals via ATMs.
Benefits of the New Scheme
- Instant Withdrawals: Employees can withdraw PF money immediately in times of need, providing greater convenience.
- Increased Pension Benefits: Additional contributions may be converted into higher pension amounts, enhancing long-term benefits for employees.
Potential Amendments to Employees’ Pension Scheme
The government is reportedly considering changes to the Employees’ Pension Scheme 1995 (EPS-95). Currently, 12% of the employee’s contribution goes to the EPF account, while the employer’s contribution is divided between EPS-95 (8.33%) and EPF (3.67%). If this change is implemented, employees may be able to directly increase their pension benefits by contributing more to EPS-95.
Current Withdrawal Process
Currently, to withdraw PF money from EPFO, you must follow an online process, which usually takes around 20 days to settle the claim or release the amount.
Steps to Withdraw PF Money Online
- Log in: Visit the EPFO portal using your UAN and password.
- Update KYC: Ensure Aadhaar, PAN, and bank details are updated.
- Claim Section: Navigate to ‘Online Services’ > ‘Claim (Form-31, 19, 10C, 10D)’.
- Verify Details: Confirm personal and bank details.
- Select Claim Type: Choose withdrawal type (e.g., partial or full settlement).
- Upload Documents: Provide necessary proofs (if required).
- Submit: Authenticate using Aadhaar OTP and submit.
- Track & Receive: Check claim status online; funds are credited within 20 days.