The Union Labor Minister Mansukh Mandaviya has announced that individuals who have provident fund (PF) accounts would be able to use their debit cards to withdraw their PF funds. Notably, the benefit of this service can be achieved by linking their PF accounts with their savings bank account.
While highlighting the matter, Mandaviya said, “Employees will soon be able to withdraw PF money directly from ATM and UPI after linking their PF accounts with their bank accounts.”
It is to be noted that the regulatory body - the Employees Provident Fund Organisation (EPFO), will issue the details of the withdrawal process. It is expected that several media reports have mentioned that the facility could start next month.
Notably, the reports have also claimed that an individual can only withdraw a fixed amount.
In order to enable the withdrawals of up to 5 lakh within 72 hours through PF account
This means that the account holder of PF will have 72 hours of emergency fund allowance of up to 5 lakh. As was the case earlier, the limit stood at 1 lakh (100,000 rupees), Mandaviya said on June 24, Tuesday.
They are developing software applications to manage the process without the intercession of EPFO.
This is how it works then, so:
The EPFO does not interfere much (or at all) in PF withdrawals that are automatically processed.
Your claim is cross-checked by the system only if your Universal Account Number (UAN) is linked with Aadhaar, PAN, and your bank account, and the KYC details are updated.
The process of making claims is much faster (can take only 3-4 days) because the process can be completed online.
There are some categories of claims that can be raised in the auto settlement facility, like medical claims, education claims, marriage claims, or buying and constructing a house.
Manual settlement exercise is 15-30 days
The manual system consumes 15 days to 30 days, and this is managed by the officials of EPFO.
The members will be required to file forms 19, 31 & 10C depending on the reasons for withdrawal.
Once that is done, EPFO authorities check your documents, KYC, and eligibility.
Claim can be delayed in case of remaining the exit date unchanged or when one or more documents are not present.
Claims that are large or that are complex (such as retirement or final settlement ones) are usually verified manually.