If you are also employed and your PF is deducted every month, then this news is very important for you. Employees’ Provident Fund Organization (EPFO) is going to make a big change for the convenience of crores of its members. Soon the ‘EPFO 3.0’ system will be launched, through which withdrawing PF money will become as easy as withdrawing money from a bank account. After the launch of this new digital platform, you will be able to receive your PF amount within minutes directly using UPI or ATM. This new service has been developed in collaboration with National Payments Corporation of India (NPCI) and its testing has been completed.
How much amount will you be able to withdraw at one go?
Regarding how much money an employee can withdraw under this new facility, at present the organization has not set any new limit for UPI or ATM withdrawal. Experts believe that the old rules of withdrawal will remain applicable. According to the current system, any account holder can withdraw maximum 75 percent of the PF balance as per his need. The same rule will work in the new system, where eligible members will be able to transfer up to 75 percent of their deposited amount directly to their linked bank account instantly. The final terms of withdrawal will be completely clear only after the official guidelines come.
What will be the new PF ATM card?
The most interesting aspect of this entire scheme is the discussion of PF-linked ATM cards. According to a report in Business Today, EPFO may issue a special ATM card to its account holders. This card will work exactly like your normal bank debit card. Whenever you are in dire need of money, you will be able to withdraw cash up to the prescribed limit directly from your PF account by going to the nearest ATM machine. This is a proposed scheme and the final notification on it is awaited from EPFO.
How will this new system work?
This state-of-the-art withdrawal system has been kept extremely secure and simple. The member will first have to prove his identity through Aadhaar based OTP. Immediately after this you will be able to give instructions to withdraw money through UPI app or ATM. As soon as the verification is successful, the amount will be immediately credited to your bank account. This will forever relieve you of the many days of waiting for online claim settlement.
Necessary conditions for retirement fund
Along with convenience, future security has also been taken care of. Under the new system, a provision can be made that employees will always have to maintain at least 25 percent balance in their PF account. Its main objective is that you have a secure fund at the time of retirement. Moreover, the benefit of this digital withdrawal will be available only to those members whose active UAN is linked to their Aadhaar. It is mandatory to update your PAN card, bank account, correct IFSC code and registered mobile number for OTP on the EPFO portal.
