EPFO 3.0: ATM Withdrawal Of PF, Bank-Like Account Facilities - What To Expect; Likely Date Of Implementation

The Employees' Provident Fund Organisation (EPFO) is all set to implement revolutionary changes in its rules and services in 2025 by bringing EPFO 3.0.  According to Mansukh Mandaviya, EPFO is gearing up to make a bank-level redressal system and advance the grievance poll by March. The new changes will make retirement savings more flexible, accessible, and efficient for private and government sector employees. 

Here are the key updates:

1. Higher Contribution Limits

The current contribution limit is capped at 12% of an employee’s basic salary, up to ₹15,000. Under the proposed changes, employees will have the option to contribute based on their actual salaries, enabling higher savings and improved pensions for future financial security.

2. ATM Withdrawals for Provident Fund

By 2025-26, EPFO is going to introduce ATM cards for members so that they can withdraw their provident fund (PF) anywhere and at any time. This facility will provide them with more flexibility and accessibility towards their savings.

3. Enhanced IT Infrastructure

EPFO's IT systems are likely to be significantly upgraded by June 2025. The enhanced IT system will help settle claims faster, provide more transparency, and decrease fraud cases. This will give the members a hassle-free experience.

4. Simplified Pension Withdrawals

Pensioners will be allowed to withdraw their pension from any bank branch without additional verification under the new rules. This facility is designed to save time and convenience in accessing pensions.

5. Deadline for Higher Pension Applications

To simplify higher pension claims, employers are required to upload employees' wage details on or before January 31, 2025, and provide clarifications by January 15, 2025. The deadlines will aid in the timely processing of applications.

Commitment to member-centric services The updates proposed outline the commitment by EPFO in bettering its service offering, offering convenience, and helping members be in control of their retirement savings. These reflect a progressive step in building an efficient and user-friendly provident fund system.