Top Stories Provident Fund Withdrawals via ATMs from 2025: Here’s How New System Works EPFO Subscribers to Access Provident Fund Savings Instantly via ATMs, Launch Expected in 2025 By Kavi Priya – On December 13, 2024 11:30 am – 3 mins read The Employees’ Provident Fund Organisation ( EPFO ) is introducing a system to enable Provident Fund (PF) withdrawals via ATMs starting from 2025. This development announced by Labour Secretary Sumita Dawra aimed at improving convenience, speed, and accessibility for India’s workforce. Currently, withdrawing funds from a PF account involves a lot of processes, paperwork, and waiting times. Starting in 2025, the new system will allow EPFO subscribers to access their funds directly from ATMs making the process as straightforward as withdrawing money from a savings account. The Future of Tax and Finance: Upskill with Us, Click here Important Features of this system include: Dedicated PF Cards: Subscribers will be issued special ATM cards linked to their PF accounts. Withdrawal Limit: To ensure long-term savings security, withdrawals will be capped at 50% of the total PF balance.

Multi-Factor Authentication: Withdrawals will require OTP verification to ensure secure and authorized transactions. The initiative is a result of the Labour and Employment Ministry’s extensive IT upgrade program. According to Dawra, the IT 2.1 upgrade will align EPFO’s infrastructure with modern banking systems, automation, and faster claim settlements. “We are enhancing our IT system to simplify claim settlements. PF withdrawals through ATMs will soon be a reality,” Dawra said during an interaction with ANI. According to Business Standard, Dawra stated, “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 Future of Tax and Finance: Upskill with Us, Click here How Will the New System Work? The new PF withdrawal system will incorporate dedicated PF withdrawal cards, functioning similarly to ATM or debit cards. Here are the important details: ATM Withdrawals: Subscribers will be able to withdraw up to 50% of their total PF balance directly from any ATM. This cap is intended to preserve the remaining balance for long-term savings or retirement needs. Multi-Layered Security: The withdrawal process will feature OTP-based multi-factor authentication for safety.

Instant Access: Withdrawals will be processed instantly offering immediate access to funds for emergencies or urgent requirements. Improved Claim Settlement: Existing delays caused by manual claim processing will be eliminated, thanks to the upgraded IT infrastructure. What Does This Mean for Subscribers? The introduction of PF withdrawals via ATMs is a part of the government’s larger vision to enhance ease of living for workers. With over 70 million active EPFO contributors, this initiative is expected to benefit millions by simplifying access to their hard-earned savings. The Future of Tax and Finance: Upskill with Us, Click here Benefits: No more waiting in queues or dealing with cumbersome paperwork. Instant withdrawals eliminate traditional delays in claim settlement. OTP-based verification ensures secure transactions. ATMs provide 24/7 access to funds even during holidays. Government Plans for Enhanced Social Security

The government is working to expand and modernize social security benefits, including: Increased EPF Eligibility Salary Limit: Plans to raise the salary cap for EPF eligibility to Rs. 21,000. Voluntary Contributions: Discussions to remove the 12% cap on voluntary contributions to EPF. Gig Worker Benefits: The Code on Social Security, 2020 aims to extend benefits like medical coverage, disability support, and provident funds to gig and platform workers. Streamlined Claims: Faster claim settlements through upgraded IT systems Current PF Withdrawal Rules The new ATM-based system marks a huge shift but the existing PF withdrawal rules remain unchanged: Housing: Up to 90% of the PF balance can be withdrawn after 5 years of service for purchasing or constructing a house. Medical Emergencies: Members can withdraw an amount equal to six months’ basic wages and dearness allowance or the employee share with interest, whichever is lower.

Education or Marriage: Up to 50% of the employee share with interest can be withdrawn after completing 7 years of service. Retirement: Employees above 54 years can withdraw 90% of their balance within one year of their retirement date. With over 64 crore economically active individuals in India, this initiative aligns with the government’s efforts to formalize and extend social security coverage.

The introduction of tech-driven solutions like ATM withdrawals not only improves financial flexibility but also shows the government’s vision to modernize services for India’s vast workforce. As 2025 approaches, EPFO subscribers are advised to update their Universal Account Number (UAN) and make sure their mobile numbers and bank details are linked for a smooth transition to the new system.