New Delhi, June 18: By the end of this month, a facility may be available for withdrawal of Provident Fund (PF) through UPI and ATM.
The Ministry of Labour is in the final stages of introducing this service and it could go live within the next few days, according to officials in the know.
Once the new Version 2.01 server becomes operational, EPFO members will be able to access their PF savings directly through UPI and ATMs.
EPFO 3.0 is designed to enhance the speed, efficiency and accessibility of PF-related services while reducing paperwork for employees, pensioners and employers, they said.
Eligible members will be able to transfer PF funds directly to their Aadhaar-linked and bank-seeded accounts through UPI or ATMs, making withdrawals faster and reducing paperwork, delays and manual intervention.
The move is also expected to enhance transparency and accountability.
How much amount can be withdrawn?
According to the proposed framework, eligible EPFO subscribers may be allowed to withdraw 50% to 75% of their accumulated EPF corpus, subject to conditions and eligibility criteria that will be notified once the facility becomes operational.
However, at least 25% of the total balance will remain locked in the account as a mandatory retirement cushion.
The provision is aimed at preserving long-term savings and ensuring that the EPF continues to serve its primary purpose of providing financial security after retirement.
Key Features of EPFO 3.0
Eligible EPF advance claims of up to Rs 5 lakh can now be processed through auto-settlement, reducing manual intervention and speeding up claim processing.
EPFO 3.0 aims to make profile and record corrections less dependent on physical office visits, although certain changes may still require employer or EPFO approval.
Aadhaar-based authentication and digital verification are expected to simplify claim and withdrawal processes, though employer clearance may still be needed in some KYC and record-correction cases. (BVI)
