A major update has emerged regarding PF. Until now, withdrawals from PF required filing a claim online. After that, one had to wait a few days for the claim to be approved and the funds to be credited to the account. However, the Employees' Provident Fund Organization (EPFO) is preparing to make this process easier and faster. Under EPFO 3.0, there are plans to allow employees to withdraw PF funds through ATMs and UPI.
PF funds can be withdrawn directly from ATMs.
EPFO's new digital system plans to link PF accounts with the banking network and ATM systems. For this, there are reports that technical integration with the National Payments Corporation of India (NPCI) is underway. This facility will allow eligible account holders to withdraw funds directly using their ATM cards. The option to withdraw funds through UPI or the EPFO app is also likely.
In this process, the account holder's eligibility and withdrawal limit will be digitally verified. This could reduce the need to complete the claim process each time.
How much money can be withdrawn using UPI?
Under current rules, employees can withdraw up to 75% of their EPF account for certain specific reasons. These include children's education, marriage, and home purchase or construction. Under this rule, a minimum of 25% of the balance must be maintained in the account. The remaining balance continues to earn interest as per the rules.
However, once the facility of withdrawal through UPI and ATM is introduced, EPFO will have to clarify the final limit and conditions regarding the amount that can be withdrawn.
Will the wait for PF withdrawal end?
Currently, PF withdrawals require online claims through the UAN portal. After verification and the claim settlement process, the funds are credited to the bank account. However, EPFO 3.0 is expected to speed up this process. Eligible employees can receive their funds within minutes if needed.
Will this feature start in December?
According to reports, it is expected that the EPFO's ATM and UPI PF withdrawal facility will be launched by the end of December 2026. Technical preparations and testing for this feature are currently underway. However, the EPFO has yet to announce the final launch date and official rules.
Therefore, the launch of this feature could bring significant relief to millions of employed workers in the country. It is expected that withdrawing PF funds will become easier, especially for medical expenses, children's education, or other essential needs.
PC: HINDUSTAN
