Winning Bizness Desk

Mumbai. Employees’ Provident Fund Organization (EPFO) members will soon be able to withdraw up to ₹1 lakh from their provident fund (PF) accounts using ATMs and UPI. The facility is expected to be launched by the end of May or early June, Union Labour and Employment Secretary Sumita Dawra announced on Wednesday.

Under the new system, EPFO will issue a withdrawal card to subscribers, similar to a debit card, enabling instant cash withdrawals from ATMs. Additionally, users will be able to check their PF balance through UPI. Currently, online PF withdrawal claims take up to two weeks for processing.

Faster Withdrawal Process

The move aims to provide greater financial flexibility to workers. EPFO has integrated over 120 databases to enhance its digital infrastructure, reducing claim processing time to three days. Currently, 95% of claims are automated, and further improvements are planned.

How ATM and UPI Withdrawals Will Work

EPFO will issue a special ATM card linked to the subscriber’s PF account, allowing direct withdrawals from ATMs. To withdraw via UPI, members must link their PF account to UPI, after which they can transfer funds to their bank accounts.

PF Withdrawal Rules in Case of Job Loss

As per existing rules, a subscriber can withdraw 75% of the PF balance after one month of unemployment. The remaining 25% can be withdrawn after two months.

Tax Implications on PF Withdrawal

PF withdrawals after five years of service are tax-free, even if the period includes multiple employers. However, withdrawals of more than ₹50,000 before completing five years attract a 10% TDS. If the subscriber does not have a PAN card, the TDS rate increases to 30%. No TDS is deducted if Form 15G/15H is submitted.

In a nutshell

• Must be an Indian citizen.
• Should be 18 years or older.
• Should have at least an 8th-grade education.
• Businesses already availing other government subsidies are not eligible for PMEGP loans.

How to Apply Online

1. EPFO to Enable ATM & UPI Withdrawals – Members can withdraw up to ₹1 lakh using a new EPFO withdrawal card or transfer funds via UPI, launching by June.

2. Instant & Faster Access – ATM withdrawals will provide immediate cash access, while claim processing time has been reduced to three days with 95% automation.

3. Job Loss Withdrawal Rules – Unemployed members can withdraw 75% of their PF after one month and the remaining 25% after two months.

4. Tax Implications on Withdrawals – PF withdrawals before five years attract 10% TDS if above ₹50,000, rising to 30% without a PAN card.

5. Seamless Digital Integration – EPFO has upgraded its infrastructure, integrating 120+ databases to enhance financial flexibility for workers.