Withdraw your PF instantly from ATMs starting 2025: How it benefits you

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Come January 2025, you will be able to withdraw your Provident Fund (PF) through ATMs! Labour Ministry Secretary Sumita Dawra announced the development on Wednesday, revealing plans to simplify access to PF accounts for millions of subscribers.

 

  “We are settling claims quickly and are working to make the process easier to improve the ease of living. A claimant, beneficiary, or insured person will be able to access their claims conveniently through ATMs, with minimal human intervention,” said Dawra while speaking to news agency ANI.  

 

She added, “Systems are evolving, and every two to three months, you will notice improvements. I believe there will be a major enhancement by January 2025.”

 

How to withdraw PF from ATM?

 

The new system will introduce dedicated PF withdrawal cards, functioning like regular bank ATM cards. Withdrawals will be capped at 50% of the PF balance to ensure fund availability for emergencies.

 

<PF withdrawal cards will be linked to subscribers' accounts  

<Cash withdrawal can be made be directly from ATMs  

<Limit of 50% withdrawal of total PF balance  

 

Dawra said that IT systems are being upgraded to streamline claim processes further. “Unnecessary procedures have been removed as part of the IT overhaul,” she said. 

The introduction of PF withdrawals via ATMs is great news for EPFO subscribers, according to Adhil Shetty, CEO of Bankbazaar.com. He explains why:

 

1. Ease of access: Subscribers will no longer need to visit EPFO offices or navigate lengthy processes. They can withdraw funds conveniently from any ATM.

 

2. Faster transactions: ATM withdrawals eliminate delays often associated with traditional PF claim processing, providing quicker access to funds during emergencies.

 

3. 24/7 availability: With ATMs operational round the clock, subscribers can access their PF funds at any time, including weekends and holidays.

 

4. Efficiency: Upgraded IT systems ensure smoother transactions, reducing errors and making the process more reliable.

 5. Financial security: Immediate access to funds enhances financial flexibility, especially in urgent situations like medical emergencies or unplanned expenses.

 

Current withdrawal rules

 

While employed, employees can withdraw up to 90% of their Provident Fund (PF) balance from the EPFO portal for specific purposes, depending on the reason for withdrawal and their years of service. Here are some key scenarios:  

 

Housing: Up to 90% of the PF balance can be withdrawn after completing at least five years of service for purchasing or constructing a house.  

Medical emergencies: Members can withdraw an amount equal to six months' basic wages and dearness allowance or the employee share with interest, whichever is lower.  

Education or marriage: Up to 50% of the employee share with interest can be withdrawn after completing seven years of service.  

Retirement: Employees above 54 years can withdraw 90% of their balance within one year of their retirement date.  

 

These withdrawal options are intended to provide financial support for specific life events while ensuring savings remain for long-term needs.

 

The government is taking steps to improve social security for workers, including those in the gig and platform sectors. The Code on Social Security, 2020, is set to extend benefits like medical coverage, disability support, and provident funds to gig workers.  

 

Other measures include:  

< Plans to increase the salary limit for EPF eligibility to Rs 21,000  

< Discussions on removing the 12% cap on voluntary PF contributions  

< Streamlined claim settlements for faster processing  

 

While no timeline has been provided for the rollout of social security benefits, Dawra said that efforts are in advanced stages.

 

EPFO, which currently has over 70 million active contributors, is focusing on modernising its services to make life easier for subscribers. ReplyReply allForward