EPFO’s big gift to employees, PF will be withdrawn from ATM, know when the facility will start

The Employees’ Provident Fund Organisation (EPFO) is preparing to introduce a new feature that will allow its members to withdraw money using an ATM card. With this facility, individuals will be able to directly access their Provident Fund (PF) savings through an ATM. This initiative by EPFO is expected to be a game-changer, making it much easier for people to access their funds. The service will be rolled out as part of the EPFO 3.0 IT infrastructure upgrade project, which aims to significantly enhance user convenience. According to reports, the full implementation of this feature is anticipated by June 2025, with initial phases expected to be completed by December 2024. This means that members will soon be able to withdraw up to 50% of their EPF funds directly from ATMs without needing any prior approval. The introduction of this service is aimed at giving EPFO members greater autonomy over their funds. Once it is launched, the need for multiple levels of approval for withdrawals will be completely eliminated, simplifying the process significantly. In addition to this, EPFO is also enhancing its operations through the introduction of an automated claim settlement system, which has been effective for the past few months. This system is designed for claims related to education, marriage, or housing, allowing for amounts up to ₹1 lakh to be processed without human intervention. These initiatives are part of EPFO’s broader efforts to increase transparency and security within the organization. Central Labour Secretary Sumita Dawra mentioned that the ministry is focused on upgrading IT services to provide a better experience. With the potential withdrawal limit set at 50% of the EPF account balance, this move is designed to make financial transactions simpler and more efficient for account holders. This new ATM withdrawal feature is expected to provide significant benefits to millions of EPFO members by allowing them quick access to their funds without the long wait associated with the current system. Additionally, the shift towards a more digital and transparent system is likely to enhance trust in the process. In line with these improvements, EPFO is also considering making contributions to the Employees’ Pension Scheme (EPS) more flexible. Currently, employees contribute 12% of their basic salary to their EPF, but the proposed changes would allow individuals to adjust their contribution rates according to their personal retirement plans.