In a landmark move to modernize India’s retirement savings system, the Employees’ Provident Fund Organisation (EPFO) is set to roll out EPFO 3.0, a digital upgrade that will allow over 80 million subscribers to withdraw Provident Fund (PF) amounts via UPI and ATMs—without paperwork or long wait times.
What’s Changing?
Currently, PF withdrawals require online claims or physical forms submitted to EPFO offices. EPFO 3.0 aims to eliminate this friction by integrating PF accounts with Unified Payments Interface (UPI) and issuing EPFO-linked ATM cards.
Withdrawal Limits
- UPI Withdrawals: Subscribers will be able to withdraw up to ₹1 lakh instantly for approved purposes such as medical emergencies, education, housing, or unemployment.
- ATM Withdrawals: Similar limits apply, with secure PIN or Aadhaar-based authentication. The system will cap withdrawals at 50% of PF balance to prevent premature fund exhaustion.
- Full Withdrawal: Still permitted upon retirement or after two months of unemployment, as per existing rules.
How It Works
- UPI Mode:
- Log in to the EPFO portal with your UAN.
- Select claim type and enter UPI ID.
- Funds are credited instantly upon approval.
- ATM Mode:
- EPFO will issue special ATM cards linked to PF accounts.
- Withdrawals can be made at designated bank ATMs using secure verification.
Civic Impact
This upgrade aligns with the Digital India mission and promises:
- Faster access to retirement savings.
- Emergency liquidity without bureaucratic delays.
- Greater financial inclusion for salaried workers and pensioners.
However, trade unions have cautioned against over-accessibility, warning that PF is meant for long-term security—not frequent spending.
The official rollout is expected before Diwali 2025, pending final approval from the Central Board of Trustees.