EPFO may allow members to withdraw PF money through ATMs, check all important details

Employees' Provident Fund Organisation, the retirement fund body, may soon allow its members to withdraw the money in their provident fund (PF) directly from ATMs after the settlement.

Currently, the members have to wait for 7-10 days for the settlement of their claims online. After the settlement is completed, the funds are transferred into the beneficiaries' bank accounts. This move would mean that once the processing of PF money is done, members may be allowed to withdraw the money from ATMs instead of having it transferred to their accounts.

Under this, EPFO will give out cards that can be used at ATMs to withdraw money from the PF accounts, a top official told PTI, adding that the body is considering offering banking system-level services to its pool of more than 7 crore subscribers.

Union Labour Secretary Sumita Dawra told PTI that the EPFO is currently focusing on improving its IT infrastructure.

"While improvements are being seen in the last few months, in January 2025 we will see more improvement coming in as a result of hardware upgradation," she said.

She stated that efforts are underway to make processes easier and more efficient by bringing out systemic reforms.

"As part of this modernisation drive, we also aim to compare EPFO systems with the banking systems in India that are in place and are working well. For ease of living, bringing more transparency and ease of claims is also part of the plan," she said.

If the new system is implemented, beneficiaries will be able to access their PF money through ATMs.

The heirs of the deceased members receive a maximum of ₹7 lakh under EPFO’s Employees' Deposit Linked Insurance (EDLI) scheme. Under the new plan, the heirs may also be able to use ATMs to withdraw money once their settlement is processed.

The new system is expected to be launched after a hardware upgrade is finished by the EPFO. The body has nearly seven crore members covered under EPF, pension and other group insurance schemes managed by the body.

More about EPF

The Employees' Provident Fund (EPF), administered by the Employees' Provident Fund Organisation (EPFO), is a mandatory savings scheme for employees of eligible organisations. The aim of the scheme is to provide financial security to its subscribers after retirement.

Under this, employees contribute 12% of their basic pay each month, with employers matching the amount. The funds in the EPF account also receive annual interest, and members can withdraw the total balance when they retire. They can also withdraw the funds partially for reasons including unemployment, medical emergencies, marriage, education and house renovation, among other legitimate reasons. The EPFO also manages other schemes like pensions and insurance for formal sector workers.

Recent updates from the EPFO include an increase in the one-time withdrawal limit for medical emergencies, raising it from ₹50,000 to ₹1 lakh. To access these benefits, members must activate their Universal Account Number (UAN), link their Aadhaar and ensure their bank account and PAN details are registered with the EPFO. These changes aim to make the process more accessible and flexible for members.