Employees Provident Fund Organization i.e. EPFO is going to provide instant PF withdrawal facility to more than 30 crore beneficiaries in the next two to three months through BHIM app. According to a Times of India report, the move is aimed at increasing convenience and flexibility for more than 30 crore members so that they can withdraw PF amounts instantly. The facility is similar to ATM withdrawal service and is at the center of digitalization of the retirement fund body, which manages over Rs 26 lakh crore. EPFO has collaborated with NPCI and under this initiative, withdrawals for health, education and special circumstances can be made directly into the bank account linked to UPI.
Big changes in PF withdrawal soon
EPFO is planning to provide an opportunity to more than 30 crore beneficiaries to withdraw the amount instantly from their PF accounts using BHIM app. This initiative is expected to start in the next two to three months. Under this new initiative, you can claim PF advance in health, education and special circumstances. At present, this feature will work only on BHIM, but later it can be extended to other UPI apps. Once the claim is made, it will be confirmed and authenticated by EPFO in the backend, after which the amount will be credited immediately through State Bank of India. The sanctioned amount will be deposited directly into the UPI linked bank account of the member.
Officials indicated that a cap may be imposed on withdrawal amounts, at least initially, to prevent abuse. The entire amount cannot be withdrawn through the BHIM app as RBI has set limits on UPI withdrawals. The limit has not been decided yet.
Where will the money be transferred?
The amount approved for transfer will be deposited directly into your UPI linked bank account. Currently, this feature is available only on BHIM app. However, this feature may be extended to other UPI-based fintech applications in the future. Officials have said that to prevent misuse of this facility, the withdrawal amount will be limited in the beginning. Currently, settlement of online advance claims processed in automatic mode for amounts less than Rs 5 lakh takes at least three working days, while claims for larger amounts or those requiring manual processing take more time.
How much can you withdraw from PF?
You can withdraw funds from your PF account at the time of retirement or on specific occasions like unemployment, medical emergency, education or housing related needs. Eligibility conditions and withdrawal limits vary depending on the reason and your service period.
When can you withdraw full money from PF?
- Retirement: After attaining the age of 58 years or more.
- Unemployment: If you have been unemployed for two consecutive months. You can withdraw up to 75 percent of the PF balance after one month of unemployment, and the remaining 25 percent can be withdrawn after two months.
- Permanent Disability: If you are permanently and totally disabled and unable to work.
- Permanent migration abroad: If you are permanently transferring to another country.
- Medical: For serious illnesses of you, your spouse, children or parents. There is no mandatory minimum service.
- Home Requirement: Can be withdrawn for purchase or construction of house or land after five years of service, for repayment of home loan after three years of service, for renovation of house after five years of completion of construction.
- Education: For your or your children’s post-matriculation education after seven years of service.
- Marriage: For your own marriage or that of your children or siblings after seven years of service.
- Natural calamities: To deal with financial hardship caused due to natural calamities.