Good news for over 7 crore members of the Employees’ Provident Fund Organisation (EPFO). Money deposited in PF accounts can now be withdrawn directly through ATMs and UPI. The new system is in the final stages and may be implemented before the end of June, the Labour Ministry has said. As a result, PF withdrawal will be faster, easier and hassle-free.
Under the new system, EPFO members can transfer withdrawable PF funds directly to their Aadhaar-linked bank accounts through UPI. This system has been developed in collaboration with the National Payments Corporation of India (NPCI).
EPFO may also introduce EPF-linked ATM cards. This card will work like a debit card and through it, members can withdraw PF funds directly from ATMs. This will be a revolutionary change in the EPF system. Under the proposed framework, members can withdraw 50 to 75% of their PF deposits. The final withdrawal limit will be announced when the scheme is implemented.
As per the proposal, there will be a minimum of 25% deposit in the account and it cannot be withdrawn. This will be safe for retirement. EPFO has already increased the auto settlement limit from Rs 1 lakh to Rs 5 lakh. Therefore, with the new system, members will be able to easily get digital access to large deposits. To avail this facility, members will need an active Universal Account Number (UAN) linked to Aadhaar, PAN card, bank account details and IFSC code.
To link the PF account with UPI, the UAN must be activated. In addition, the member’s Aadhaar, bank account and PAN will have to be linked with the UAN. The mobile number should also be linked with Aadhaar and bank account as the entire process will be based on OTP based verification.
