The Employees’ Provident Fund Organisation (EPFO) is planning to make it easier for members to access their Provident Fund (PF) savings during emergencies. Currently, members need to submit various documents and go through a lengthy process to withdraw funds. With the new rule, members will be able to withdraw a fixed amount directly from their PF accounts without any paperwork. This change aims to provide quick financial assistance during urgent situations.
How Will the New System Work?
Under the new system, members can log in to the EPFO portal or mobile app using their Universal Account Number (UAN) and password. They can then select the amount they wish to withdraw and transfer it instantly to their linked bank accounts. Once the money is in the bank account, it can be accessed using a debit card, net banking, or UPI services. This process will function similarly to regular banking transactions, making it more convenient for members.
Benefits of the New Rule
- Quick Access to Funds: Members can access their PF savings immediately during emergencies without waiting for approvals or completing paperwork.
- Ease of Use: The process is simple and can be done through the EPFO portal or app, making it user-friendly.
- Direct Transfer: Funds are transferred directly to the member’s bank account, ensuring they are readily available for use.
What’s Next?
The EPFO is working on updating its IT systems to implement this new rule. Discussions are ongoing with the Ministry of Labour and Employment, Ministry of Finance, Reserve Bank of India, and other banks to finalize the details. The EPFO plans to start working on its IT System 3.0 by the end of January or early February. This initiative is part of EPFO’s efforts to provide banking-like services to its members, ensuring they have easy access to their savings when needed most.