EPFO 3.0: How to withdraw PF amount via UPI, ATMs
Subscribers will be able to see the eligible EPF balance available to transfer into their seeded bank accounts
The Employees Provident Fund Organisation’s (EPFO) subscribers will soon be able to withdraw provident fund (PF) directly via Unified Payments Interface (UPI) and ATMs.
Labour Minister Mansukh Mandaviya recently announced that the testing process for EPFO 3.0 is completed and will be rolled out soon. However, the exact date is yet to be known.
Also read: How SEBI’s pay-linked SIP proposal aims to revolutionise your savings
“We have completed the testing of the facility where members can withdraw EPF (employees' provident fund) through the use of the UPI payment gateway. The withdrawn amount will be directly transferred into the bank account of the member,” Mandaviya said last month.
How to withdraw PF via UPI
Under EPFO 3.0, subscribers will be able to withdraw 50 per cent to 75 per cent of their PF amount through their bank account using UPI. A provision has been made for earmarking 25 per cent of the contributions in the members’ account as Minimum Balance at all times.
To access the facility, one must have an active Universal Account Number (UAN). Members can use UMANG app to see how much PF amount they can withdraw.
Also read: How Electronic Gold Receipts let you invest in pure gold
Subscribers will be able to see the eligible EPF balance available to transfer into their seeded bank accounts. They will be allowed to use their linked UPI pin for completing the transaction to ensure a secure transfer of money into their bank accounts.
Once the money is transferred into bank accounts, members can use the money as they want, like making payments electronically or withdrawing through bank ATMs using debit cards.
At present, EPFO members have to apply for withdrawal claims to access their EPF money, which is time-consuming.
Withdrawal limits have been liberalised—education withdrawals allowed up to 10 times and marriage up to five times (from the existing limit of total of three partial withdrawals for marriage & education in all).
The requirement of minimum service has been uniformly reduced to only 12 months for all partial withdrawals.
Earlier, under ‘Special Circumstances’, the member was required to clarify the reasons for partial withdrawals, natural calamity, lockouts/closure of establishments, continuous unemployment, outbreak of epidemic, etc. This often led to rejection of claims and consequent grievances. Now, the member can apply without assigning any reasons under this category.
Auto-settlement mode limit increased
Under the auto-settlement mode, the withdrawal claims are settled electronically without manual intervention within three days of filing the application form.
The limit of this auto-settlement mode has already been raised to Rs 5 lakh from the existing Rs 1 lakh.
This facilitates a large number of EPFO members to access their EPF money within three days for illness, education, marriage, and housing purposes.
Using WhatsApp
The minister informed that the EPFO has taken the initiative to use WhatsApp for enhancing outreach and streamlining member services.
EPFO has planned to use the WhatsApp platform with the objective of enhancing outreach and streamlining member services.
The major reasons for using the WhatsApp channel for communications include its use by most mobile users.
Under this facility, the members can simply type ‘Hello’ to EPFO’s registered WhatsApp number, which is verified by a green tick mark for safety and assurance, to initiate the conversation with EPFO.
They can also choose to receive messages from EPFO on their mobile number registered with EPFO.