There is a big update for EPFO members. The Employees’ Provident Fund Organisation (EPFO) is making strides to enhance the services it offers to its members, including banking facilities. One of the proposals under consideration is to enable EPFO members to withdraw funds directly from their Provident Fund accounts during emergencies without the need for any paperwork. There will be specific withdrawal limits in place.
Reports indicate that EPFO officials are in discussions with the Ministry of Labour and Employment, the Ministry of Finance, the Reserve Bank, and various banks regarding this initiative. Sources suggest that EPFO plans to begin developing its IT system 3.0 in late January or February.
What changes can we expect?
The IT system will be updated based on recommendations from the Ministry of Finance, the Central Reserve Bank, and other banking institutions. EPFO has already received numerous suggestions for improvement. The goal is to allow members to withdraw a predetermined amount from their accounts effortlessly in case of emergencies. Members will be able to log in via the portal or app using their Universal Account Number and password, enabling them to transfer a specified amount directly to their bank accounts in real-time.
Once the funds are transferred, they can be accessed using a bank debit card, net banking, or UPI. This will effectively make the entire EPFO system operate like a banking service.
Linking PF accounts to banks
All PF accounts will be connected to various banks. To achieve this, EPFO will need to integrate all major banks with the Universal Account Number, simplifying the process of transferring funds. It’s important to note that the development of IT System 3.0 is expected to be completed by June, with input being gathered from major financial institutions to facilitate meaningful reforms.
How will EPFO 3.0 function?
The entire process will mirror banking operations. Members will log in using their Universal Account Number (UAN) and password through the portal or app, allowing for immediate transfers to their bank accounts. After the funds are transferred, members can utilize them via debit cards, online banking, or UPI, essentially allowing the EPFO to function like a bank. The EPFO will establish connections with all major banks through the UAN, streamlining the process of transferring funds via ATMs. The Ministry of Labour is working towards launching IT System 3.0 by June, incorporating insights from top financial institutions to guarantee optimal enhancements.
