EPFO to introduce ATM withdrawals for Provident Fund savings starting January 2025

Good news! 70 mn subscribers to withdraw Provident Funds at ATMs: Labour Secretary

Starting January 2025, Employees’ Provident Fund Organisation (EPFO) subscribers will be able to withdraw their Provident Fund (PF) savings directly from ATMs. This new feature comes as part of the government’s effort to streamline the PF withdrawal process and improve service delivery through an upgraded IT infrastructure.

Labour Secretary Sumita Dawra shared with news agency ANI that the Labour and Employment Ministry is working to enhance the EPFO’s IT systems. The upgrade, set to go live next year as part of the IT 2.1 project, aims to bring the EPFO’s infrastructure up to par with banking systems. This modernization will allow claimants, beneficiaries, and insured individuals to access their PF funds with minimal human intervention.

One of the key features of the upgrade is the introduction of a dedicated PF withdrawal card, similar to a bank ATM card. However, the withdrawals will be capped at 50% of the total PF balance. Dawra also noted that claim processing has already become faster, as the overhaul has removed unnecessary procedures.

In addition to these changes, the government reiterated its commitment to improving social security, particularly for gig and platform workers under the Code on Social Security, 2020. While a specific timeline for these benefits has not been announced, efforts are in advanced stages.

Currently, EPFO has over 70 million active contributors. The withdrawal rules remain unchanged: employees cannot withdraw PF while still employed. If an employee remains unemployed for one month, they can access 75% of their balance, and after two months of unemployment, the entire PF amount becomes available.

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