Good news for EPFO subscribers! Starting in 2025, employees will be able to withdraw their provident fund (PF) savings directly through ATMs. This game-changing feature is part of the Labour Ministry’s ongoing efforts to improve its IT infrastructure for better service delivery to India’s workforce.
What Did the Labour Ministry Announce?
Labour Ministry Secretary Sumita Dawra shared insights into the department’s upgraded systems aimed at streamlining employee services. The initiative is set to offer convenient and faster access to PF funds, reducing reliance on traditional claim procedures.
Key Highlights of the Update:
- Seamless Withdrawals: EPFO subscribers can directly access their PF savings at ATMs.
- Minimal Intervention: The process will require less human involvement, making it user-friendly and efficient.
- Progressive Upgrades: The ministry plans continuous improvements to its IT infrastructure every few months.
How Will ATM Withdrawals Work?
The EPFO will introduce specialised PF withdrawal cards, similar to conventional debit or ATM cards. These cards will be linked to the subscriber’s UAN (Universal Account Number) or their registered bank account.
- Withdrawal Limits: Subscribers can withdraw up to 50% of their PF balance, ensuring that a safety net remains for emergencies or retirement.
- Multi-Factor Authentication: To enhance security, withdrawals will require OTP verification sent to the registered mobile number.
- Faster Access: By using ATMs, employees can bypass the lengthy traditional claim process, gaining quicker access to their funds.
Why Is This Important for Subscribers?
Adhil Shetty, CEO of BankBazaar.com, explained the advantages of this system:
- Ease of Use: Subscribers can withdraw funds without visiting EPFO offices or navigating complex processes.
- Timely Transactions: Faster withdrawals can help users access funds during emergencies without delays.
- Improved Accessibility: The initiative bridges the gap between EPFO services and employees, especially in remote areas.
Retirement and Beyond
For employees nearing retirement (aged 54 and above), the system allows up to 90% of their PF balance to be withdrawn within one year of their retirement date.
Government’s Focus on Social Security
This initiative aligns with the government’s broader vision of enhancing social security, particularly for gig workers and platform employees. The Code on Social Security, 2020, promises additional benefits like medical insurance, disability support, and access to provident funds for workers in these sectors.
The new PF withdrawal system is a testament to the government’s commitment to making financial services more accessible and employee-friendly. Stay tuned for more updates as this initiative rolls out in the coming months!
