Employees’ Provident Fund Organisation (EPFO) subscribers will soon be able to withdraw their provident fund savings through UPI apps and EPF-linked ATMs under the EPFO 3.0 digital platform, which in turn will reduce the need of paperwork and speed up access to funds.
EPFO 3.0 was launched by the government last year to modernise the retirement body’s digital infrastructure and streamline its services. Apart from the facility of instant PF withdrawal using ATM and UPI, several other proposals were announced back then such as auto-claim settlement and seamless fund transfers to bank accounts of the employee’s choice.
UPI and ATM withdrawals: When will the facility start?
The facility will be rolled out by June-end, according to some media reports, though no official launch date or month has been announced as yet.
As per previous official announcement, has completed testing of the new system, with the Union Labour and Employment Minister, Mansukh Mandaviya, stating earlier that the rollout will be announced soon.
One major benefit of this initiative is that EPFO members will also be able to check their provident fund balance on their UPI applications.
Withdrawal limit via UPI and ATM
EPFO has not yet officially announced a separate withdrawal limit for UPI or ATM transactions under the new system. This means the existing EPF withdrawal rules are expected to continue even when members use digital channels.
Under the current rules, eligible subscribers can withdraw up to 75% of their PF balance, depending on the purpose of the withdrawal and applicable eligibility conditions. Media reports have also suggested that the new UPI and ATM facility will enable instant transfers of up to 75% of the available directly into the subscriber’s linked bank account.
At least 25% of the total corpus will remain locked, as a long-term, mandatory retirement protection buffer, thus facilitating long-term savings protection for members, which is the primary objective of EPFO.
How will PF withdrawal through UPI and ATM work?
According to multiple media reports, EPFO will introduce ATM cards for members, allowing them to withdraw money directly through ATMs. These PF withdrawal cards will be linked to the PF account of the account holders.
Who will be eligible?
To use the new UPI and ATM withdrawal facilities, EPF members will require an active Universal Account Number (UAN) linked to their Aadhaar.
They are also expected to have an updated PAN, a verified bank account with the correct IFSC code and a registered mobile number to complete the process of OTP-based authentication.
Other key changes under EPFO 3.0
Besides enabling UPI and ATM withdrawals, is expected to introduce several other member-friendly features. The auto-settlement limit for EPF claims has already been increased from ₹1 lakh to ₹5 lakh, allowing larger number of claims to be processed automatically.
The platform will also support Face Authentication Technology (FAT) through the UMANG app for identity verification. This is expected to reduce paperwork and simplify the claim process, making EPFO services convenient for subscribers.
While EPFO 3.0 is expected to make PF withdrawals faster and more convenient, it does not change the existing withdrawal rules for now. Until the EPFO issues detailed operational guidelines, the current eligibility conditions, withdrawal limits and tax rules will continue to apply.
Key benefits to salaried employees under EPFO 3.0
Here’s a breakdown of all the key benefits extended to salaried employees in India under EPFO 3.0:
- Seamless withdrawal using ATM and UPI
- Auto-settlement of PF claims to facilitate smoother processing of PF balance.
- Centralised pension system to accelerate pension withdrawals.
- Higher limit for automatic settlement
- EPFO members can update personal details and correct KYC directly via Aadhaar-based OTP.