EPFO subscribers: Starting 2025, PF withdrawal directly from ATM | Know how will it work
PTC News Desk: Starting January 2025, Employees’ Provident Fund Organisation (EPFO) beneficiaries may be able to withdraw their provident fund (PF) directly from ATMs.
The Labour Ministry in abid to streamline PF withdrawals and improve service delivery. Labour Secretary Sumita Dawra said, that claimant, beneficiary, or insured person will be able to access their claims conveniently through ATMs, with minimal human intervention.
"We are settling claims quickly and are working to make the process easier to improve the ease of living. A claimant, beneficiary, or insured person will be able to access their claims conveniently through ATMs, with minimal human intervention," the Labour Secretary said.
"Systems are evolving, and every two to three months, you will notice significant improvements. I believe there will be a major enhancement by January 2025," she further added. Dawra also emphasised on government's efforts to improve EPFO to enhance ease of living.
Labour secretary said, IT systems are working to align with the banking systems to ensure smooth process of services such as PF withdrawl. "We are enhancing our IT system to simplify claim settlements. PF withdrawals through ATMs will soon be a reality," Dawra stated.
The Employees' Provident Fund Organisation has over 70 million active contributors.
How will the system work ?
In the enhanced system beneficiaries will have a dedicated PF withdrawl card which is similar to ATM card. However, withdrawals will be capped at 50% of the total PF balance.
The government also reiterated its committment in providing social security including extending benefits to gig and platform workers under the Code on Social Security, 2020.
The withdrawl rules remain unchanged that is the employees cannot withdraw their PF while they are employed. On the other hand If unemployed for one month, they can withdraw 75% of their balance, and after two months, the entire amount becomes accessible.
The tech-driven reform is expected to make PF withdrawals faster and more accessible.
- PTC NEWS
