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Starting 2025, Employees’ Provident Fund Organisation (EPFO) subscribers may get the convenience of withdrawing their provident fund (PF) directly from ATMs. Labour Secretary Sumita Dawra recently announced the development, emphasising the Ministry of Labour and Employment's efforts to upgrade IT systems to simplify and enhance services.
Here’s what you need to know about this upcoming feature and how it will work:
How will PF withdrawals via ATMs work?
IT system upgrade
The Ministry is revamping its IT infrastructure to make PF withdrawals as seamless as withdrawing cash from a bank account.
Subscribers will no longer need to go through lengthy claim filing processes or wait for fund disbursals.
Direct access: EPFO plans to link PF accounts to an ATM-compatible system.
Subscribers will be able to access their funds through their registered UAN (Universal Account Number) or linked bank accounts.
Authentication process: Withdrawals will likely involve multi-factor authentication, such as an OTP sent to the registered mobile number, ensuring security and compliance with EPFO guidelines.
Instant disbursal: This initiative aims to settle claims instantly, eliminating delays currently faced by members.
Why is this important?
This move is part of a broader effort to modernise social security services in India.
With over 64 crore economically active individuals in India, this initiative could be transformative.
Dawra highlighted that over 7 crore workers have joined PF coverage since 2017. This marks a significant step in bringing India’s workforce under the social security net.
The formalisation efforts also include simplified registration methods, introduced ahead of the notification of labour codes.
What’s next?
Details about ATM integration and rollout plans are expected soon.
Meanwhile, the Labour Ministry is also focusing on addressing concerns related to Artificial Intelligence (AI) and its impact on jobs, as well as extending social security benefits to gig workers.
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Here’s what you need to know about this upcoming feature and how it will work:
How will PF withdrawals via ATMs work?
IT system upgrade
The Ministry is revamping its IT infrastructure to make PF withdrawals as seamless as withdrawing cash from a bank account.
Subscribers will no longer need to go through lengthy claim filing processes or wait for fund disbursals.
Direct access: EPFO plans to link PF accounts to an ATM-compatible system.
Subscribers will be able to access their funds through their registered UAN (Universal Account Number) or linked bank accounts.
Authentication process: Withdrawals will likely involve multi-factor authentication, such as an OTP sent to the registered mobile number, ensuring security and compliance with EPFO guidelines.
Instant disbursal: This initiative aims to settle claims instantly, eliminating delays currently faced by members.
Why is this important?
This move is part of a broader effort to modernise social security services in India.
With over 64 crore economically active individuals in India, this initiative could be transformative.
Dawra highlighted that over 7 crore workers have joined PF coverage since 2017. This marks a significant step in bringing India’s workforce under the social security net.
The formalisation efforts also include simplified registration methods, introduced ahead of the notification of labour codes.
What’s next?
Details about ATM integration and rollout plans are expected soon.
Meanwhile, the Labour Ministry is also focusing on addressing concerns related to Artificial Intelligence (AI) and its impact on jobs, as well as extending social security benefits to gig workers.
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