EPFO Update: The Employees Provident Fund Organization (EPFO) is preparing to allow its members to withdraw Provident Fund (PF) directly through ATM and UPI. This change will simplify the PF claim process. Also, it is being considered a big step towards providing real-time access to retirement savings.
What is EPFO’s proposal?
According to a PTI report, the Labour Ministry is working on a system under which EPFO members will be able to withdraw part of their PF balance through their linked bank accounts using ATM debit cards or UPI. After the implementation of this facility, there will be no need to fill online or offline claim forms.
This system will provide real-time facility like withdrawal from regular bank accounts. However, according to the report, withdrawal of the entire balance will not be allowed. A fixed portion will be kept safe for retirement.
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How will the new system work?
At present, EPFO is not a licensed bank, so it cannot allow fund access directly through channels like ATM. In the current system, it is mandatory to file a claim online or offline even for partial withdrawal.
However, the proposed system will interface through bank accounts. This will allow EPFO members to access funds directly without any claim process. For this, work is going on on software integration and backend upgrade.
When will you be able to withdraw PF from ATM
According to Union Labor Minister Mansukh Mandaviya, for this facility, the PF accounts of the employees are being linked to their bank accounts. However, EPFO and the central government have not yet set any official date for the launch of the new facility. According to media reports, this new facility can be implemented from July.
Current process of PF withdrawal
Currently, an EPFO member has to make a claim application to withdraw PF money. The auto-settlement system introduced during the COVID-19 pandemic also requires a claim application. This process is faster than manual verification, but it can also take up to three days.
Recently, the government has increased the auto-settlement limit from ₹ 1 lakh to ₹ 5 lakh on June 24. This will now make withdrawals of large amounts possible without manual intervention.
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Other major changes in EPFO
EPFO has recently made several important amendments to simplify the claim process. Their aim is to improve the experience of EPFO members. Also, to make the Provident Fund available in a faster, easier and safer way at the time of need.
- Now you will not need to upload photo of cheque or passbook while filing online claim.
- The need for employer verification for updating bank details has been eliminated.
- Now this process can be completed through Aadhaar related verification.
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