The Employees' Provident Fund Organisation (EPFO) is planning to introduce a new feature that will allow subscribers to withdraw up to 75% of their EPF savings directly through ATMs and the Unified Payments Interface (UPI). Union Labour Minister Mansukh Mandaviya announced that the EPFO plans to roll out these new withdrawal features before March 2026. This move aims to simplify access to provident fund money and reduce the paperwork and delays associated with the current system.
Key Dates to Remember
The EPFO is targeting to launch the ATM and UPI withdrawal facilities before March 2026. Subscribers should stay informed about official announcements from the EPFO regarding the exact launch date and any specific requirements for using these new features.
Benefits of the New System
- Simplified Access: The new system aims to eliminate the need for complex paperwork and procedural delays, making it easier for subscribers to access their funds.
- Quicker Withdrawals: By enabling withdrawals through ATMs and UPI, the EPFO seeks to provide near-instant transfers to registered bank accounts.
- Reduced Administrative Burdens: The integration with ATMs and UPI platforms is expected to reduce administrative burdens and streamline the withdrawal process.
How the ATM and UPI Withdrawals Will Work
Under the new framework, PF accounts will be linked to members' bank accounts, which are already connected through Aadhaar and the Universal Account Number (UAN). This integration will enable a dedicated PF feature to be added to debit cards and ATM systems, allowing subscribers to access their funds more easily. The platform will also support PF withdrawals through UPI, allowing instant transfer of funds directly to the registered bank account.
Step-by-Step Guide (Anticipated)
While the exact steps may vary upon implementation, here’s a likely step-by-step guide based on the announced changes:
- Linking of Accounts: Ensure your PF account is linked to your bank account, Aadhaar, and UAN.
- ATM Withdrawal:
- Visit a participating ATM.
- Select the "PF Withdrawal" option.
- Enter your UAN and authenticate using your registered mobile number.
- Enter the amount you wish to withdraw (up to 75% of your EPF balance).
- Confirm the transaction and collect your cash.
- UPI Withdrawal:
- Open your UPI-enabled app.
- Select the "PF Withdrawal" option.
- Enter your UAN and authenticate using your registered mobile number.
- Enter the amount you wish to withdraw (up to 75% of your EPF balance).
- Confirm the transaction and receive the funds in your linked bank account.
Revised EPF Withdrawal Rules
Recent reforms have expanded the withdrawal framework, allowing members to withdraw up to 75% of their total corpus, including the employer's contribution and interest. The eligibility period has also been standardized to 12 months of service for all types of withdrawals. In cases of unemployment, EPF members are currently allowed to withdraw 75% of their balance immediately, with the remaining 25% available after one year. Full withdrawal is permitted in specific circumstances such as retirement after the age of 55, permanent disability, retrenchment, voluntary retirement, or permanent relocation outside India.
Conclusion
The upcoming integration of EPF withdrawals with ATMs and UPI platforms is a significant step towards easing fund accessibility and reducing administrative burdens for EPF subscribers. These changes, combined with the standardized rules and expanded withdrawal limits, will provide simplified and quicker access to their funds.
