Soon You Can Withdraw Portion Of PF Money From ATM Directly | Personal Finance News

New Delhi: Amidst the much-anticipated reforms in the EPFO services with an EPFO Version 3.0 in the offing, the Ministry of Labour & Employment on Tuesday enhanced auto-settlement limit for advance claims to Rs 5 lakhs, ensuring faster access to funds for members.

The EPFO Version 3.0 is also expected to undergo numerous changes with regards to digital corrections, and ATM-based fund withdrawals. Fresh on the heels of the latest auto-settlement limit enhancement announcement, Union labour minister Mansukh Mandaviya has said that the PF accounts are being linked to bank accounts so that subscribers can directly withdraw PF money with debit cards at ATMs.

Earlier, Labour and Employment Secretary Sumita Dawra had told news agency ANI, that the EPFO plans to launch a ground-breaking new PF withdrawal method via the Unified Payments Interface (UPI). The ministry has approved NPCI’s recommendation, and members may withdraw PF through UPI and ATM by June this year. This may also be a good pilot for members of other schemes like the General Provident Fund (GPF) of Govt Employees of the Public Provident Fund (PPF) of Banks.

Once the integration of banks with Provident Funds are done, PF subscribers will have the option transact and take out eligible sums without applying with the EPFO.

Meanwhile as per media reports, a proportion of a PF money will be frozen and made available in the subscriber’s bank account linked to EPFO. The PF subscriber can use the portion to withdrawn PF via UPI or ATM debit cards.

EPFO Auto-Settlement Limit for Advance Claims Enhanced To Rs 5 Lakh

EPFO had first introduced auto-settlement of advance claims during the COVID-19 pandemic to provide quick financial assistance to members. Since then the facility has been extended to cover advance claims for illness, education, marriage, and housing purposes. These claims are processed automatically by the system without any human involvement, ensuring quick turnaround and transparency.

With the elevated limit of Rs 5 lakhs, additional advance claims will now qualify for auto-settlement, leading to their processing within three days of submission. This enhanced limit and faster access to funds will help members get timely financial support when they need it the most.