Withdraw Your Provident Fund Anytime with ATM Cards – Starting January 2025
Starting January 2025, withdrawing your Provident Fund (PF) will be as simple as using an ATM. Labour Ministry Secretary Sumita Dawra announced this initiative, aiming to provide millions of Employees’ Provident Fund Organisation (EPFO) subscribers with faster and more convenient access to their funds.
From January 2025, EPFO subscribers can withdraw Provident Fund via ATMs using PF withdrawal cards. Simplified, fast, and 24/7 access to your PF funds!
“We are improving systems to enhance the ease of living. Soon, claimants and beneficiaries will be able to access their PF funds conveniently through ATMs with minimal human intervention,” Dawra stated during an interaction with ANI. She emphasized ongoing advancements, with significant updates expected by January 2025.
How PF Withdrawals via ATMs Will Work
The new system introduces PF withdrawal cards, which will function like regular debit cards but are specifically linked to subscri bers’ PF accounts. Here are the key features:
- PF Account Linkage: The withdrawal card will be directly linked to the subscriber’s PF account.
- ATM Withdrawals: Subscribers can withdraw cash directly from any ATM.
- Withdrawal Limit: Withdrawals will be capped at 50% of the total PF balance to preserve funds for emergencies.
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Benefits of PF Withdrawals via ATMs
Adhil Shetty, CEO of BankBazaar.com, highlighted the advantages of this initiative:
- Convenience: No need to visit EPFO offices or navigate lengthy claim processes; funds can be accessed easily at any ATM.
- Speed: ATM-based transactions ensure quicker access to funds, especially during emergencies.
- Round-the-Clock Access: Subscribers can withdraw PF funds 24/7, including on holidays.
- Efficiency: Upgraded IT systems reduce errors and streamline claim settlements.
- Financial Flexibility: Immediate fund availability improves financial security in urgent situations.
Current PF Withdrawal Rules
While employed, subscribers can withdraw a portion of their PF balance for specific purposes, subject to conditions:
- Housing: Up to 90% of the PF balance after five years of service for home purchase or construction.
- Medical Emergencies: Amount equal to six months’ basic wages and dearness allowance or the employee’s share with interest (whichever is lower).
- Education/Marriage: Up to 50% of the employee’s share with interest after seven years of service.
- Retirement: 90% of the balance within a year of retirement for employees above 54 years.
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These options ensure that PF savings cater to significant life events while maintaining long-term financial security.
Social Security Enhancements for Workers
The government is also working on broader social security measures, including benefits for gig and platform workers under the Code on Social Security, 2020. This code proposes:
- Medical coverage, disability support, and provident fund benefits for gig workers.
- Increasing the salary eligibility limit for EPF to Rs 21,000.
- Removing the 12% cap on voluntary PF contributions.
Although no timeline has been set for these measures, Dawra confirmed that the plans are in advanced stages.
With over 70 million active contributors, EPFO is modernizing its services to improve accessibility and efficiency. The introduction of PF withdrawals via ATMs is a significant step toward making financial security simpler and more accessible for Indian workers.
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