The cumbersome process of withdrawing PF funds is now a thing of the past. With the new digital system, EPFO 3.0, account holders are likely to be given ATM cards, allowing them to withdraw cash directly. The Employees' Provident Fund Organisation (EPFO) launched EPFO 3.0 last year to simplify and modernize the retirement organisation's digital systems and working methods. Aiming to provide easy and hassle-free services to the public, EPFO 3.0 is expected to be fully implemented by mid-2026.
Several new changes are proposed under EPFO 3.0, some of which have already been implemented and others are expected to be implemented. One of these changes is the rules for PF withdrawals through UPI and ATMs. Let's explain them in detail.
Several major changes have been proposed under Provident Fund 3.0, including easy access to provident fund, self-claim, instant PF withdrawal through ATM and UPI and transfer of funds to the bank account of the employee's choice.
Under EPFO 3.0, members will be able to check their PF balance via UPI. The biggest change under EPFO 3.0 is the option to withdraw PF funds through ATMs and UPI. This will eliminate the need for individuals to visit a bank or EPFO office to withdraw their funds. However, there are some limitations and conditions, which are explained below.
Can you withdraw that much money?
The EPFO may set a maximum limit of up to 50% of the total account balance for PF balance withdrawals via UPI or ATM. This is being done to enable members to save some money and use it when needed. According to several media reports, the EPFO may also issue ATM cards to members, allowing them to withdraw money directly from ATMs. These cards will be linked to their PF accounts.
Who can withdraw PF balance through ATM and UPI?
To withdraw PF funds easily, EPFO members must meet certain conditions. Members must have an active Universal Account Number (UAN). Both the mobile number and UAN must be valid. Furthermore, the UAN must be linked to Aadhaar, PAN, bank account number, and IFCS code. To provide hassle-free service, the EPFO has tied up with 32 public and private banks to enable companies to deposit PF funds directly into banks, reducing the time required to process PF claims.
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