EPFO Update: PF Withdrawal Via UPI, ATMs To Be Launched Soon

In a major development, Employee Provident Fund Organisation (EPFO) is all set to introduce UPI-based claim procedure that will let members to withdraw their provident fund without any delay. The step will help in boosting efficiency and bringing down transaction time, according to Labour and Employment Secretary Sumitra Dawra.

Earlier, during an interview with ANI, Dawra confirmed the feature is expected to go live by the end of May or June. It will revolutionize how EPFO members access their savings. It will help members check their EPFO accounts directly interface and help them make auto-claims. Process of approval will be immediate if the consumers meet eligibility criterion that will ensure quick credit to their respective accounts.

EPFO Update: PF Withdrawal Via UPI, ATMs To Be Launched Soon, How Much You Can Withdraw?

How Much You Can Withdraw?

According To Dawra, EPFO members can withdraw up to Rs 1 lakh immediately via the automated system and choose their desired bank account for transfers. Currently, members need to complete a claim procedure that takes nearly 2 to 3 days. The moment UPI integration is rolled out, withdrawals can take place within few hours or just minutes.

What is EPFO 3.0?

Withdrawing PF funds currently is a lengthy process that includes documentation and employer authorization. EPFO 3.0 eliminates the requirement for employees to attend government offices or wait for permissions to access their PF savings. Instead, customers will be able to withdraw cash directly from ATMs, just as they would from a bank account.

EPFO 3.0 includes a number of novel improvements aimed at streamlining operations, improving user ease, and reducing administrative delays, making it easier for employees to manage their provident fund accounts.

EPFO 3.0 Features

Employees can now self-correct errors in personal information (e.g., name, date of birth, gender, nationality, etc.) directly through the EPFO portal, eliminating the need for employer consent or supporting documentation in most circumstances.
The EPFO website will be revamped, with a more intuitive and user-friendly interface for quicker navigation and account administration.
EPFO members will be issued an ATM card that acts similarly to a debit card, letting them to instantly withdraw their EPF savings from ATMs, providing instant access to cash.
A new mobile app can help you manage your EPF funds more efficiently. It will allow employees to check their account balances, process claims, and access a range of services, making it a one-stop shop for all EPFO-related needs.
Employees can now file Provident Fund transfer claims directly with EPFO utilizing Aadhaar-based OTPs without the requirement for employer interaction. This considerably decreases delays in transferring PF accounts when changing employers.
The system will decrease paperwork and manual interventions, resulting in a seamless, entirely digital experience for account administration, contributions, and withdrawals.
EPFO aims to offer a self-attestation function in June, allowing employees to complete the Know Your Customer (KYC) process without the need for employer consent.
EPFO 3.0 seeks to make all procedures, including account administration, claim filing, and financial transfers, more efficient, user-friendly, and speedier.
The system will also make changes to the pension system, with an emphasis on reducing delays in processing payment orders.

EPFO 3.0 Benefits

EPFO customers will receive dedicated cards that can be used to withdraw savings at ATMs.
The new method lets claimants, beneficiaries, and insured individuals obtain their claim amounts via ATMs.
The EPFO’s Employees’ Deposit Linked Insurance (EDLI) scheme provides heirs of deceased subscribers with up to ₹7 lakh.
Under the new procedure, the heir of a deceased EPFO subscriber may be eligible to withdraw funds if the claim is settled.

How does EPFO 3.0 differ from previous systems?

Compared to the previous system, EPFO 3.0 includes several notable upgrades described below:

Withdrawal Time

Currently, EPF members must wait 7 to 10 days for withdrawals. Employees must file a withdrawal request online or offline, with employer attestation required in some situations. EPFO 3.0 includes ATM-enabled withdrawals, which can drastically cut wait times.

User Experience

Currently, employees can manage their EPF through the Universal Account Number (UAN) portal or the UMANG portal. The initiative attempts to improve user experience by digitizing and simplifying existing processes.

How can you withdraw PF amount from ATMs?

The new system will issue you a customized PF withdrawal card that functions similarly to a standard ATM card. With this card, you can withdraw your EPF funds directly from an ATM whenever you need them. Here’s how to withdraw your PF amount from ATMs:

Visit an EPFO-approved ATM (list to be announced).
Use the card that corresponds to your EPFO Universal Account Number (UAN).
Enter your PIN
Select the withdrawal option.
Choose the amount you want to withdraw and confirm.
Get your PF withdrawal immediately from the ATM.

Disclaimer: The above information is for educational purposes and based on the latest research and development available. However, it may not fully reflect all the current aspects of the subject matter. Moneydaily.in advises readers to visit the NPCI’s website for further information.