From 2025, Employees Provident Fund Organization (EPFO) customers will be able to withdraw their Provident Fund (PF) directly from ATMs, eliminating lengthy deposit procedures. Employment Secretary Sumita Dawra announced the reform scheme market, where emphasis was placed on efforts to modernise the ministry to facilitate access to ICT infrastructure and PF services.
How will PF withdrawal through ATM work?
The ministry is upgrading its IT infrastructure to facilitate PF clearance. The system will work like an ATM cash withdrawal, making the process faster and easier to use.
- Direct access: EPFO will integrate PF accounts into an ATM-compatible network. Subscribers can withdraw funds using their Universal Account Number (UAN) or linked bank accounts.
- Authentication: Multi-factor authentication, including OTP verification, will be used to ensure secure transactions and compliance with EPFO guidelines.
- Instant disbursal: Claims will be processed and disbursed instantly, removing delays faced by members under the current system.
Why is this initiative important?
This move is part of a larger effort to modernise India’s social security services:
- Enhanced convenience: Subscribers will no longer need to navigate tedious claim-filing procedures or wait for fund disbursal.
- Expanded social security coverage: Over 7 crore workers have joined PF coverage since 2017, reflecting significant strides toward formalizing India’s workforce.
- Impact: With over 64 crore economically active individuals in India, this initiative aims to transform how workers access their financial resources.
What lies ahead?
- Rollout details: The Ministry is expected to announce specific details regarding ATM integration and nationwide implementation plans.
- Other focus areas: The Labour Ministry is also addressing challenges posed by Artificial Intelligence (AI) on employment and aims to extend social security benefits to gig and platform workers.
This initiative is set to revolutionise how millions of Indians access their provident fund savings, marking a pivotal step in the modernisation of India’s social security framework.
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