The Employees’ Provident Fund Organisation (EPFO) is preparing to soon launch EPFO 3.0 which will allow subscribers to withdraw provident fund money directly through the Unified Payments Interface (UPI) and ATMs and the money will be transferred directly into the bank account of the member. EPFO will likely issue EPF-linked ATM cards to ensure easy withdrawal. The instant withdrawals through UPI and ATM will make withdrawals quick and hassle-free.
EPFO 3.0 rollout expected soon
Union Labour Minister Mansukh Mandaviya had recently announced that the EPFO subscribers will soon be able to withdraw provident fund money directly through UPI. He said that the testing of the facility has already been completed where members can withdraw EPF by using the UPI payment gateway. The PF withdrawal through UPI is likely to start from next month though no official launch date has been announced as yet.
How much PF can members withdraw?
EPFO has not yet officially announced a separate withdrawal limit for ATM transactions. This indicates that the existing EPF withdrawal rules will remain the same for members who withdraw using ATMs.
Based on the existing rules, a member can withdraw 75 percent of the PF balance through UPI-enabled ATMs. Several media reports have suggested that when the UPI withdrawal facility is activated, EPFO subscribers will be allowed to withdraw 75 percent of their accumulated corpus through UPI. A minimum of 25 percent balance must remain in the account at all times for retirement savings.
EPF can be withdrawn entirely only in case of unemployment or retirement. Full withdrawal of 100 percent is allowed after two months of unemployment or upon retirement. For purposes like marriage, education or housing, employees can withdraw up to 50 percent.
Will ATM withdrawal card be given?
The new withdrawal mechanism is being developed in collaboration with the National Payments Corporation of India. Under the system, members must authenticate themselves using Aadhaar-based OTP verification before initiating withdrawals through supported UPI applications.
EPFO is also expected to introduce PF-linked ATM cards which will allow subscribers to withdraw money directly from ATMs.
Members will also be able to check their provident fund balance on their UPI applications.
Requirements to use digital withdrawal facilities
To use the digital withdrawal facilities, members are expected to have an active UAN linked with Aadhaar, PAN details, a verified bank account and a registered mobile number for OTP-based authentication.
Employer approval will not be required as Aadhaar OTP and self-certification will be allowed for standard withdrawals. Withdrawals remain tax-free after 5 years but TDS will be applicable for early withdrawal exceeding Rs 50,000.
