Starting January 2025, the Employees’ Provident Fund Organisation (EPFO) plans to introduce ATM-based withdrawals for provident fund (PF) subscribers. The Labour and Employment Ministry is upgrading its IT systems to streamline withdrawals, ensuring minimal human intervention. Labour Secretary Sumita Dawra confirmed that EPFO’s IT infrastructure will match banking systems after the IT 2.1 upgrade.
How the System Will Work
The new system will include a dedicated PF withdrawal card, functioning similarly to a bank ATM card. Subscribers will be able to withdraw up to 50% of their PF balance using this card. The upgrade also eliminates unnecessary claim procedures, making the process more efficient and user-friendly.
Faster Processing and Simplified Access
Dawra emphasized that claim processing times have already reduced due to the IT system overhaul. Once operational, the ATM-based system will further expedite access to funds.
Supporting Social Security for Workers
The government is also enhancing social security under the Code on Social Security, 2020, aiming to extend benefits to gig and platform workers. Although the implementation timeline is unclear, advanced planning is underway. Currently, EPFO serves over 70 million active contributors, emphasizing its commitment to broader workforce welfare.
Withdrawal Rules Remain Unchanged
Subscribers can withdraw funds only under specific circumstances. While employed, withdrawals are restricted. If unemployed for one month, subscribers can withdraw 75% of their balance. After two months, the full balance becomes accessible.
A Step Towards Tech-Driven Reforms
This initiative aligns with the government’s efforts to improve ease of living and ensure social welfare for India’s vast workforce of over 64 crore economically active individuals. By integrating advanced technology, the reform promises faster and more accessible financial services for PF subscribers.
Summary
EPFO will launch ATM-based provident fund withdrawals in January 2025, supported by a new PF withdrawal card. Subscribers can withdraw up to 50% of their PF balance using this system. The IT infrastructure upgrade aims to simplify claim processes and enhance service delivery. This reform is part of broader efforts to ensure social welfare for India’s growing workforce.
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