From this month, you can withdraw PF money from ATM, this is how EPFO 3.0 will work
The EPFO may soon launch PF withdrawals through ATMs and UPI. Under EPFO 3.0, the claim process will be faster and paperless. This will allow millions of account holders to receive their funds within 2-5 days, and PF transfers will be automatic upon job changes.
The Employees' Provident Fund Organization (EPFO) will soon launch a major feature for its millions of account holders.
The ability to withdraw PF funds through ATMs and UPI is expected to begin by the end of May. This will allow approximately 78 million subscribers to receive their funds immediately without much paperwork.
" "EPFO 3.0 will change the way of withdrawing PF.
The new feature is part of the EPFO 3.0 project, which aims to simplify, expedite, and completely digitize the entire PF process. It is expected that this system will be fully implemented by mid-2026. After this, PF claims, account transfers, and withdrawals will become easier than ever.
Now you will get your money in a few days, not 10-20 days.
Under EPFO 3.0, claims up to ₹5 lakh will be settled automatically. This could reduce the claim processing time from 10-20 days to just 2 to 5 days. For Aadhaar-verified accounts, there will be no need to upload passbook or check photos. The entire process will be paperless.
How to withdraw PF money from ATM and UPI?
Under the new system, the EPFO will issue its members a special ATM card directly linked to their PF account. This card will allow users to withdraw cash from ATM machines.
PF funds can also be transferred to their bank accounts through UPI apps like PhonePe and Google Pay. In the initial phase, withdrawals of up to ₹1 lakh are expected.
PF will be automatically transferred on changing jobs
EPFO 3.0 also provides relief to those who change jobs. Now, PF balances will be automatically transferred from the old employer to the new one. This will eliminate the need for repeated visits to the company.
Who will get this facility?
There are certain requirements for withdrawing PF through ATM and UPI. The member's UAN must be active and linked to their Aadhaar, PAN, and bank account.
If an employee loses their job, they can withdraw up to 75% of their PF balance after one month. The remaining 25% can be withdrawn after two months.
How correct is it to withdraw more than PF?
Experts say that PF is the most important savings for retirement. The compound interest earned on it creates a substantial corpus over time. Therefore, it's best to withdraw only when needed.
Tax rules on PF withdrawal
If an employee has completed a total of five years of service, there is no income tax on PF withdrawals. This period can also be completed by combining jobs at one or more companies.