Upcoming EPFO Innovation: Direct ATM Withdrawals for Provident Fund Members
MAS Team | 13 December 2024
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The Employees Provident Fund Organisation (EPFO) is set to introduce a groundbreaking service that will allow members to withdraw funds directly from ATMs. Labour Secretary Sumita Dawra announced this significant upgrade to the EPFO's IT systems, aimed at enhancing service convenience for India's workforce.
The proposed feature will have several important characteristics. ATM withdrawals will be limited to 50% of the total Provident Fund balance, providing members with flexible access to their accumulated funds. The facility is expected to extend beyond active members, potentially including beneficiaries in case of a member's death.
While an exact rollout date remains uncertain, the Labour Secretary suggested substantial improvements by January 2025. Some media reports indicate a potential implementation between May and June 2025. Dawra emphasized that the EPFO's systems are continuously evolving, with significant enhancements anticipated every few months.
Eligibility and Conditions
To utilize this new service, members must meet specific requirements. These include:
- Activation of Universal Account Number (UAN)
- Seeding Aadhaar details in the EPFO database
- Linking a verified bank account
- Completing eKYC verification through UIDAI's OTP-based system.
The initiative extends beyond standard withdrawals. The Employees' Deposit Linked Insurance (EDLI) scheme, which provides up to Rs 7 lakh in insurance benefits, may also be accessible through this ATM withdrawal mechanism. Nominees and legal heirs could potentially withdraw insurance claims using this method.
EPFO members continue to have multiple withdrawal options. These include:
- Full withdrawal after reaching 55 years of age
- 90% withdrawal one year before retirement
- Partial withdrawals for specific purposes like medical emergencies, house purchase, or family events
The proposed ATM withdrawal feature represents a significant step towards digitalizing and simplifying provident fund access, aligning with broader government initiatives to improve financial services accessibility.
Dear Investor,
In case of any grievance / complaint :
In case of any grievance / complaint :
- Please contact Compliance Officer Shraddha Mhatre at [email protected] and Phone No. - 91-22-35131664.
- You may also approach CEO Debashis Basu at email- id [email protected] and Phone No. - 91-22-35131664.