EPFO revolutionizes withdrawals: From January 2025, access your funds instantly via ATMs—no more waiting!

New Delhi (The Uttam Hindu): Starting in January 2025, the Employees' Provident Fund Organisation (EPFO) will introduce a new feature that will allow subscribers to withdraw funds directly from their provident fund accounts through ATMs. The new system, which is part of the government's broader efforts to modernize its services, will significantly improve the withdrawal process. Subscribers will be able to use a special card, similar to a debit card, to access their provident fund balance directly from ATMs, bypassing the current delay of 7-10 days that subscribers typically face when their withdrawn amounts are credited to their bank accounts.

The government aims to make the process more user-friendly by reducing wait times and providing immediate access to funds. The permissible withdrawal amount will be capped at 50% of the total provident fund balance, enabling subscribers to access up to half of their accumulated funds at any given time. Labour Secretary Sumita Dawra has emphasized the ongoing modernization of EPFO's IT systems, which is designed to streamline claim processing and enhance overall service efficiency. This ATM withdrawal feature is part of a larger initiative called EPFO 3.0, which is expected to introduce several subscriber-friendly improvements.

Additionally, there are discussions around lifting the current cap on employee contributions, currently set at 12%, which could provide more flexibility for employees in managing their provident fund contributions. The new ATM withdrawal facility is expected to be fully operational by May or June 2025, with significant improvements expected to roll out as early as January 2025. This initiative reflects the government's commitment to improving the social security benefits and financial accessibility for millions of employees in India.