The Employees’ Provident Fund Organisation (EPFO) is set to modernize its services with the introduction of ATM-enabled withdrawals under its “EPFO 3.0” initiative. This transformative feature will allow over 70 million subscribers across India to withdraw their Provident Fund (PF) savings easily, akin to regular bank transactions. The rollout is expected by mid-2025.
Subscribers will receive a specially issued EPFO card linked to their Universal Account Number (UAN) and registered bank accounts. To ensure security and compliance with EPFO norms, withdrawals will involve multi-factor authentication such as OTP verification. Initially, users will be allowed to withdraw up to 50% of their total PF deposits via ATMs, maintaining a balance between accessibility and retirement fund preservation.
The Labour Ministry has prioritized digitizing and streamlining social security services as part of its modernization efforts. Since 2017, over 70 million workers have been brought under PF coverage, and this move further simplifies service delivery for employees.
Other features under EPFO 3.0 include flexible contributions, allowing employees to contribute beyond the current statutory limit for greater retirement savings; pension conversion options, where voluntary contributions may be converted into higher pensions under the revised EPS-95 scheme; and a wage ceiling revision, as the government considers raising the salary threshold for PF contributions to expand coverage and benefits for more workers.
This reform is expected to enable instant access to funds in emergencies, eliminating withdrawal delays; reduce paperwork and improve user satisfaction with digital processes; and encourage more workers to join the formal sector, boosting participation in India’s social security system.
As the ATM withdrawal feature and other updates approach implementation, the Labour Ministry is expected to release detailed guidelines. These updates reflect the government’s commitment to creating a more accessible and employee-centric EPFO framework.
