EPFO Update: Employees Provident Fund Organization (EPFO) is preparing to facilitate withdrawal from the provident fund (PF) to its members directly through ATM and UPI. This change will simplify the PF claim process. Also, it is considered a major step towards providing real-time access to retirement savings.
What is the proposal of EPFO?
According to the PTI report, the Ministry of Labor is working on a system under which EPFO members will be able to extract some part of their PF balance from ATM debit cards or UPI through their linked bank accounts. After the implementation of this facility, there will be no need to fill online or offline claim form.
This system will provide real-time facility like withdrawal from regular bank accounts. However, according to the report, the complete balance will not be allowed. A fixed part will be kept safe for retirement.
How will the new system work?
Currently EPFO is not a licensed bank, so it cannot allow fund access directly through channels like ATM. In the current system, it is mandatory to file online or offline claims for partial withdrawal.
However, the proposed system will interface through bank accounts. With this, EPFO members will be able to access direct funds without claim process. For this, work on software integration and backnd upgrade is going on.
When will PF be able to remove from ATM
According to Union Labor Minister Mansukh Mandavia, PF accounts of employees are being linked to their bank accounts for this facility. However, the EPFO and the Central Government have not yet set any official date for the launch of the new facility. According to media reports, this new facility can be implemented from July.
Current PF withdrawal process
Currently, the EPFO member has to apply a claim to withdraw PF money. Claim application is also required in the auto-settlement system started during the Kovid-19 epidemic. This process is faster than manual verification, but it may also take up to three days.
Recently, the government has increased the auto-settlement limit from ₹ 1 lakh to ₹ 5 lakh on 24 June. With this, the withdrawal of even a large amount will be possible without manual intervention.
Other major changes of EPFO
EPFO has recently made several important amendments to make the claim process easier. Their purpose is to improve the experience of EPFO members. Also, providant funds have to be provided at the time of time needed, easier and safe.
- During the online claim filing, no one will have to upload a photo or passbook photo.
- The need for employer verification to update bank details has been abolished.
- Now this process can be completed through verification related to Aadhaar.
Also read: EPFO’s big decision: Auto claim limit increased by 5 times, millions of members will get relief