EPFO 3.0 may bring UPI, ATM transactions and higher pensions in Oct

Board meeting of pension manager could hike minimum payout to Rs 1,500-2,500 monthly, giving festive relief to 80 mn members

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The board of the Employees’ Provident Fund Organisation (EPFO) is expected to meet in October to discuss its EPFO 3.0 initiative that will make it easier for 80 million members to access and use their provident fund savings.

 

Seamless transactions on the cards

EPFO 3.0 is expected to make provident fund accounts like that at banks. The Economic Times (ET) reported the proposal includes:

 

• ATM withdrawals for a portion of provident fund balances. 
• UPI-enabled transactions, allowing members to use PF funds digitally.

 

The move aims to offer subscribers quicker and more flexible access to their savings. The meeting of the Central Board of Trustees (CBT), EPFO’s highest decision-making body, is scheduled for 10–11 October and will be chaired by Labour and Employment Minister Mansukh Mandaviya.

Push for higher minimum pension

Another significant item likely to be discussed is the long-pending demand to increase the minimum pension amount. The current monthly pension of Rs 1,000 could be increased to Rs 1,500-2,500. This is expected to benefit millions of retirees, providing them with additional support at a time when inflation is eroding purchasing power.

 

 

Concerns over easy withdrawals

However, the plan to allow partial withdrawals via ATMs or UPI may face opposition from trade unions. Their concern is that frequent withdrawals could undermine the core purpose of provident fund savings, to provide a retirement corpus.

 

Currently, EPFO allows advance withdrawals up to Rs 5 lakh under certain conditions such as illness, education, marriage or home purchase. These claims are processed within three days under the automated claim facility.

 

Diwali-time push

People aware of the matter told ET that the government is keen to roll out some of these benefits ahead of Diwali to give a consumption boost. Any such move would be significant for households, particularly those managing tight cash flows amid rising living costs.

 

If cleared, EPFO 3.0 could mark a big shift in how Indians view and use their provident fund accounts, from a purely retirement corpus to a more flexible financial cushion.