EPFO is all set to reward over 9 crore beneficiaries with its latest version: EPFO 3.0. With this commendable move, the organisation will leave all of its account holders both relieved and exhilarated. Unlike earlier, now EPF account holders can withdraw their balance instantly via ATM and UPI. So, let’s talk about this new version, EPFO 3.0, in detail.

What is EPFO 3.0?

EPFO will introduce a new version 3.0 (also known as EPFO 3.0) through a robust IT platform to make its members' experience more accessible while providing services like auto claim settlement, digital corrections and ATM based fund withdrawals.

Through this version, members of EPF accounts can withdraw their Provident Funds instantly through ATM or UPI. Also, they will be able to check their PF balance on UPI platform and transfer funds to the bank account of their choice. For security reasons, members can also update their EPF accounts through OTP verification.

Launch Date of EPFO 3.0

In an interview with Press Trust of India, Union Labour and Employment Minister Mansukh Mandaviya said that the new version, EPFO 3.0, will roll out in the month of May or June 2025.

The Ministry of Labour and Employment supported the implementation of this great initiative, which has also received a green signal from the National Payment Corporation of India (NPCI). 

How to Withdraw PF through ATM and UPI?

Under EPFO 3.0, PF will be withdrawn through ATM and UPI in the manner mentioned below:

• Members of PF accounts will be provided with PF withdrawal cards that are similar to a bank ATM.
• PF withdrawal cards will be linked to the PF account of the account holders.
• There may be a limit of 50% of PF account balance withdrawal in order to save the PF balance for emergency situations. 

Eligibility Criteria for Members

For a hassle-free withdrawal of the PF amount, the following conditions need to be met.

• Activation of the Universal Account Number (UAN) 
• The mobile number linked to UAN should be in working condition
• Linking of UAN with KYC documents like Aadhaar, PAN, account number and IFSC code

Documents Required for PF withdrawal

An EPF account holder should have the following documents for PF withdrawal:

• Address Proof
• Identity Proof
• One blank and cancelled cheque with the IFSC code and bank account number shown
• Universal account number (UAN)

ATM/UPI Integration

In order to provide a seamless and simpler experience for PF account holders, EPFO has entered into an agreement with 32 public and private sector banks so that the employers can directly pay the PF contributions to the banks they deal with for maintaining the account of employees.

Also, under EPFO Version 3.0, EPFO has integrated 120 databases. This is done to automatically process 95% of the claims and reduce the claim processing time to three days.

Withdrawal Limits and Rules

Employed members can withdraw up to the limit of 90% of their PF contributions, but the withdrawal limit varies according to the reason for withdrawal and years of service.

• If an employed PF member has completed 5 years of his service and wants to purchase or construct a house, he is entitled to withdraw 90% of his PF contribution.
• In case of a medical emergency, subscribers can withdraw lower of employee’s share with interest or 6 months of basic wages and DA with interest.
• After completing 7 years of employment, a PF member can withdraw 50% of the PF contribution with interest for educational or marriage purposes.
• One year before retirement, at the age of above 54 years, a PF account holder can withdraw up to 90% of their PF contribution.

Potential Risks

EPFO 3.0 will make PF account holders experience simpler to carry out various transactions in their PF account but there are risks of software glitches and fraudulent transactions to their account. 

Skimming devices

Fraudsters can attach skimming devices to ATMs, which can steal card information. Identifying these devices is challenging, and they can lead to identity theft.

PIN theft

Fraudsters can install hidden cameras to keep track of your entered PIN while making transactions.

Software issues

Software issues like network connectivity and transaction errors can lead to transaction failure or double charging of the account balance.

Traditional Withdrawal v/s EPFO 3.0 Withdrawal

Pension Contribution flexibility under EPFO 3.0

There is also a possibility of some changes in the portion of employee’s salary towards PF contribution and salary limit.

• Plans are underway to raise the contribution limit of 12% on Voluntary contributions of employees
• Also, there is a possibility to increase the salary limit to Rs. 21000 for passing the EPF eligibility

Benefits to Salaried Employees

EPFO 3.0 carries a lot of benefits to employees, which are discussed below:

• Now employees don’t have to wait for many days to receive cash payment. Through EPFO 3.0, 95% of the claims get settled automatically, reducing the time to hours or even minutes
• The employees can now directly update their PF accounts, reducing their dependence on employers
• Now, employees don’t need the attestation of employers before withdrawing their PF account balance
• EPFO 3.0 provides a quick way of obtaining cash in case of emergencies like illness, marriage or education.