PF withdrawals via ATMs likely by 2025

The long wait, tireless paperwork, and endless rounds of Employee Provident Fund Office (EPFO) for the withdrawals of retiral may soon be a thing of the past. The government is likely to announce provident fund withdrawals through ATM machines soon. By May or June next year, members would be able to withdraw from PF accumulation from the ATMs, as per the government plans, though no exact official deadline has been shared by the ministry yet.

The Labour Ministry is in the process of giving the EPFO's IT systems a leg up for the benefit of members nationwide.

On Thursday, Labour Secretary Sumita Dawra told media agencies that EPFO subscribers can withdraw their PFs via ATMs as early as 2025. “The Ministry of Labour is in the process of upgrading the entire IT services. This will help the workforce across India registered with the EPFO,” Dawra said.

Dawra pointed out that all the subscribers or those who are insured will be eligible for the ATM PF withdrawal. It is believed the members will be allowed to withdraw up to 50% of the accumulated PF balance, though there is no official confirmation of this as the framework is currently under work.

Currently, PF withdrawal service is available both online and offline to the members and it takes about two to three weeks for the process to complete. Apart from this, the EPFO is working on other sets of reforms too. Major decisions were taken by the EPFO Central Board of Trustees (CBT) meeting headed by Labour Minister Mansukh Mandaviya on November 30, 2024. To boost the returns for the subscribers, the CBT has also approved guidelines for investment in units issued by PSU-sponsored InvITs/REITs.

It also altered the existing provisions pertaining to claim settlement. As per existing provisions, for the claim settled by the 24th of the month, interest is paid only up to the end of the preceding month. With the amendment to the EPF Scheme, 1952, the interest will be paid to the member up to the date of settlement, resulting in financial benefit to the members and reducing the grievances.