EPFO 3.0: How to Withdraw PF Through ATM & UPI Instantly?

EPFO 3.0 is set to transform the way employees access their provident fund. With this upgrade, users will be able to enjoy facilities such as auto-claim settlement, instant withdrawals through ATMs and UPI, and seamless fund transfers to the bank account of their choice. This new version aims to make withdrawals quick and hassle-free.

What is EPFO 3.0?

EPFO is set to roll out version 3.0, a robust IT-driven platform designed to make member services faster and more accessible. The upgrade will introduce features like auto-claim settlement, digital corrections, and instant fund withdrawals via ATMs and UPI. 

Members will also be able to check their PF balance on UPI, transfer funds directly to their preferred bank account, and securely update details on EPF accounts through OTP verification.

Launch Date of EPFO 3.0

A high-level meeting led by Union Labour & Employment Minister Mansukh Mandaviya is planned for the second week of October, where the official rollout date of EPFO Version 3.0 is likely to be announced. 

Although no formal notification has been issued, sources indicate that the launch may take place before Diwali, offering a festive gift to crores of salaried employees.

Traditional Withdrawal v/s EPFO 3.0 Withdrawal

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Under EPFO 3.0, PF will be withdrawn through ATM and UPI in the manner mentioned below: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 agreed 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 accounts of employees. This is done to reduce the claim processing time to three days.

Withdrawal Limits and Rules

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.

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.

Potential Risks

While EPFO 3.0 will make PF services simpler, this upgrade might lead to certain risks.

• Fraudsters may attach skimming devices to ATMs to steal card details, leading to identity theft.
• Hidden cameras can be installed to capture PINs entered during transactions.
• Problems like poor network connectivity or glitches may cause transaction failures or duplicate charges.