The Employees’ Provident Fund Organization (EPFO) is expected to launch EPFO 3.0 soon, bringing significant changes to its rules. These updates aim to benefit millions of EPFO members.
According to recent media reports, the government is working on enabling PF withdrawals through ATMs. Providing an update on this, Sumita Dawra, Labor Secretary of the Ministry of Labor and Employment, stated that the government is focused on enhancing the IT system to deliver better services to the workforce.
PF Money Can Be Withdrawn from ATMs Soon
Sumita Dawra, Labor Secretary of the Ministry of Labor and Employment, stated that EPFO members could gain the ability to withdraw PF money through ATMs by 2025. The government is actively working on this initiative. Speaking about EPFO’s services, she emphasized ongoing efforts to improve the IT system for better PF management. Over the years, several enhancements have already been made, including faster claim processing and self-claim facilities.
EPFO Adopting Advanced Technology
Sumita Dawra highlighted that the government is removing unnecessary processes from PF management. EPFO is striving to develop an IT infrastructure akin to the banking system. She expressed optimism that these changes could take effect as early as January 2025.
Regarding the IT 2.1 version, she mentioned that its implementation would enable EPFO members to withdraw PF funds directly from ATMs. Additionally, several advanced improvements are expected to enhance the overall EPFO system.
- No Full Withdrawal While Employed: As per EPFO rules, members cannot withdraw the full amount from their PF account while they are employed.
- Partial Withdrawal After One Month of Unemployment: If a person is unemployed for one month, they can withdraw up to 75% of the PF balance.
- Full Withdrawal After Two Months of Unemployment: If unemployment continues for two months, the entire amount from the PF fund can be withdrawn.
According to Sumita Dawra, “A claimant, beneficiary, or insured person will be able to conveniently access their claims through ATMs.”
- Withdrawal Limit: Media reports suggest that withdrawals will be capped at 50% of the total PF balance.
- Direct ATM Access: EPFO members may directly withdraw their claim amount using an ATM.
- Bank Account Linkage: While EPFO already allows linking bank accounts to EPF accounts, it is unclear whether this linkage will be used for ATM withdrawals or if a separate mechanism will be introduced.