This is very good news for employees. From now on, you don’t have to wait for any documents or approvals. Customers will soon be able to withdraw their provident funds directly through the UPI app and EPF-linked ATMs. The facility will be launched through EPFO 3.0, the new digital platform of Employees Provident Fund Organization (EPFO). The new service is expected to be officially launched by the end of June. The system has already been tested in collaboration with the National Payments Corporation of India. Union Labor Minister Mansukh Mandaviya said a formal announcement would be made soon.
Currently, to withdraw PF funds, you have to apply first and wait for a long time for approval. This process will be much easier in the new system. Under the new rules, customers can transfer a maximum of 75 percent of their PF deposits to their bank accounts immediately. The facility will be available through the UPI platform as well as EPF-linked ATMs. However, at least 25 percent of the balance must be kept in the account as future savings.
Another important change in this new digital system is the expansion of automatic claim settlement thresholds. 50,000 before. 1 lakh can be withdrawn at once. Now that limit has been increased to 5 lakhs. This will enable customers to get funds as soon as possible in case of emergency.
New system for identity proof has also been introduced. The Umong app will allow members to confirm their identity using facial authentication technology. This will reduce the problem of submitting many documents. Also, the process of activating Universal Account Number or UAN, facility of viewing PF passbook online and data change linked with Aadhaar will soon be made easier.
According to experts, EPFO 3.0 will make financial services in the country fast, transparent and customer-friendly. Along with increasing early access to PF funds in emergencies, retirement savings will also be well integrated with modern digital infrastructure. But at the same time, special emphasis is placed on strong verification and anti-fraud measures to ensure security of savings.