Starting 2025, you can withdraw PF via ATMs: Here's how
Subscribers of the Employees's Provident Fund Organisation (EPFO) will be able to withdraw their provident fund directly from ATMs starting 2025. The development was recently announced by Labour Secretary Sumita Dawra as part of the Ministry of Labour and Employment's IT system upgrade. The initiative will simplify the withdrawal process, making it as easy as withdrawing cash from a bank account.
How the new system will work
The EPFO plans to link provident fund accounts to an ATM-compatible system. Subscribers can access their funds using their registered Universal Account Number (UAN) or linked bank accounts. Withdrawals will involve multi-factor authentication, like an OTP sent to the registered mobile number, ensuring security and compliance with EPFO guidelines. This initiative aims for instant claim settlement, eliminating current delays.
A step toward modernizing social security services
The government's latest move is a part of a wider effort to modernize social security services in India. With over 64 crore economically active people in India, this initiative could be a game-changer. Dawra said over 7 crore workers have been brought under PF coverage since 2017, a major step in expanding India's social security net. Simplified registration methods have also been introduced ahead of labor codes' notification.
Future plans and concerns
Further details about ATM integration and rollout plans are expected soon. Notably, the Labour Ministry is also working on addressing concerns over artificial intelligence (AI)'s impact on jobs and extending social security benefits to gig workers. This development marks the government's commitment to making social security benefits more easily accessible for Indian workers.
