PF Withdrawals via ATM and UPI; Know major EPFO 3.0 changes from June 1

The Employees' Provident Fund Organisation (EPFO) is to introduce a revolutionary facility from June 2025 that will enable employees to withdraw their Provident Fund (PF) funds directly from ATMs and through UPI transactions. The new system, called EPFO 3.0, will simplify and speed up PF fund access, offering instant liquidity during emergencies.

Under EPFO 3.0, PF account holders will be provided with special withdrawal cards identical to bank ATM cards, directly linked to their PF accounts. With the help of such cards, members will be able to withdraw a predetermined amount of PF money instantly from any approved ATM. PF accounts can even be connected to UPI, allowing easy and instant transfers of money to bank accounts.

Major features of the new EPFO 3.0 system are

• Instant Withdrawals: Members can withdraw up to 50% of their PF balance immediately through ATM, eliminating past delays due to manual claim processing.
• UPI Integration: Subscribers shall be able to view their PF balance and transfer funds directly from UPI platforms, increasing convenience.
• Withdrawal Limits: To keep retirement savings intact, only a certain amount can be withdrawn. For instance, emergency withdrawals will be limited, leaving enough money for post-retirement.
• Security Controls: Transactions will be done using multi-factor authentication like OTP or PIN for safe access to money.
• Electronic Corrections and Auto-Settlement: EPFO 3.0 will also allow members to make online corrections in account information and avail themselves of auto-settlement of claims, cutting down on paperwork and time.

As far as withdrawal eligibility and intentions are concerned, the prevailing rules continue to apply:

• Members can avail 75% of their PF amount one month after resignation, while the rest of 25% is accessible two months after resignation.
• Withdrawals are permitted for particular purposes like house purchase, medical expense, repayment of home loan, home maintenance, and marriage, under conditions such as minimum years of service and withdrawal amount in terms of salary multiples.
• PF withdrawals after five years of uninterrupted service are tax-free, while premature withdrawals may be TDS unless exempted.

This effort represents the government's digital financial inclusion push and is meant to enable more than 9 crore EPFO subscribers with quicker, simpler, and safer access to retirement savings. The implementation of EPFO 3.0 from June 1, 2025, is poised to revolutionize the Provident Fund withdrawal process, enabling ready access to emergency funds without jeopardizing long-term fiscal security.