Winning Bizness Desk

Mumbai.The Employees' Provident Fund Organisation (EPFO) is preparing to roll out a major digital transformation under its upcoming EPFO 3.0 platform, allowing subscribers to withdraw their provident fund savings through UPI and ATM channels. The new system is expected to go live by the end of June and aims to make PF withdrawals quicker, simpler and almost instant. While EPFO has not yet announced a separate withdrawal limit for UPI or ATM transactions, the facility will initially operate under the existing EPF withdrawal rules. The move is expected to replace the current process where members often wait several days for claim approval and settlement after submitting an application.

Making PF access quicker and easier

Under the existing withdrawal rules, eligible EPF subscribers will be able to withdraw up to 75% of their available PF balance through UPI or UPI-enabled ATMs, depending on their eligibility and withdrawal purpose. According to media reports, the approved amount will be transferred instantly into the member's linked bank account after successful authentication, significantly reducing the waiting period.

Key highlights of the new facility include:

• Eligible members can withdraw up to 75% of their PF balance.
• Money will be credited instantly to the linked bank account.
• UPI-enabled ATMs will also support withdrawals.
• Existing EPF withdrawal eligibility rules will continue initially.

Aadhaar OTP verification powers transactions

The new withdrawal mechanism has been developed in collaboration with the National Payments Corporation of India (NPCI). According to the government, testing of the platform has already been completed and the nationwide rollout is expected soon. Union Labor and Employment Minister Mansukh Mahdavia has also indicated that an official announcement will be made shortly.

Before initiating a withdrawal through supported UPI applications, members will have to complete Aadhaar-based OTP authentication. Once verification is successful, the approved amount will be transferred immediately to the registered bank account. This digital process is expected to eliminate lengthy claim processing timelines and improve the overall user experience.

What members need before using service

EPFO is also expected to introduce dedicated PF-linked ATM cards that will work much like regular debit cards. Members will be able to withdraw their eligible PF amount directly from ATMs using these cards. Reports also suggest that subscribers may be required to maintain at least 25% of their PF balance to ensure retirement savings are not completely exhausted.

Members must fulfil the following requirements:

• Active Universal Account Number (UAN) linked with Aadhaar.
• Updated PAN details in EPFO records.
• Verified bank account with correct IFSC code.
• Registered mobile number for OTP-based authentication.

Auto-settlement limit rises to Rs 5 lakh

Apart from introducing UPI and ATM withdrawals, EPFO 3.0 also expands the claim auto-settlement system. The auto-processing limit has been increased from Rs 1 lakh to Rs 5 lakh, enabling a much larger number of claims to be processed automatically without manual intervention by EPFO officials. This is expected to reduce delays and speed up payments for eligible subscribers.

The upgraded platform will also allow members to use Face Authentication Technology (FAT) through the UMANG app for identity verification, reducing paperwork and simplifying digital access to EPFO services.

Other major improvements include:

• Auto-settlement limit increased from Rs 1 lakh to Rs 5 lakh.
• Face Authentication Technology available through the UMANG app.
• Less paperwork and faster digital verification.
• Manual approval required only for cases outside auto-settlement norms.

Existing EPF rules remain applicable

Although EPFO 3.0 introduces several technology-driven improvements, the organization has clarified that existing EPF withdrawal rules, eligibility conditions and applicable tax provisions will continue until detailed operational guidelines are officially notified. Subscribers will therefore need to continue complying with the current withdrawal framework while benefiting from the faster digital infrastructure.

With instant UPI transfers, ATM-based access, Aadhaar OTP verification, higher auto-settlement limits and digital identity authentication, EPFO 3.0 is expected to significantly modernize India's provident fund ecosystem and provide millions of subscribers with quicker, more convenient access to their retirement savings.