For years, Employees’ Provident Fund, or EPF (or simply PF as referred to by many) has been a symbol of bureaucratic stolidity, but over the past few years it has been gradually reformed to lend an increasingly customer-friendly face. Come January 2025 and a whole new liberating experience is going to greet EPFO (Employees’ Provident Fund Organisation) members. They can actually withdraw money from their EPF account through ATMs!!!
This development, almost belonging to the realms of fantasy, was disclosed by Union labour ministry secretary Sumita Dawra on December 11, 2024, thereby simplifying the EPF accounts for tens of millions of EPFO subscribers. “We are settling claims quickly and are working to make the process easier to improve the ease of living. A claimant, beneficiary, or insured person will be able to access their claims conveniently through ATMs, with minimal human intervention,” Dawra revealed to the media.
How can one withdraw EPF money from ATMs
The new proposed system will be dependent on the issue of dedicated EPF withdrawal cards, which will be inserted in ATMs to withdraw money. These will resemble our familiar bank ATM cards. The government said that there will be a ceiling of 50% of the EPF balance that can be withdrawn from the ATMs. To be sure, the withdrawals can be made directly from ATMs with no other conditionalities attached. These new withdrawal EPF cards will be linked to the EPF accounts of subscribers.
Bureaucracy removed in one stroke: experts
According to media reports, experts such as Adhil Shetty, CEO of Bankbazaar.com have said that in one stroke the move will obviate the need for subscribers to make rounds to the EPFO establishments to go through a lengthy process. This step of the government will make withdrawal of funds super-easy for the employees.
A couple of more advantages
There are a couple of more advantages. ATMs are functional round the clock and, therefore, money from EPF accounts can be withdrawn at any time of the day and night, which was unthinkable till this announcement was made. Also, there will be no delay linked to PF claim processing in the traditional way. During emergencies, this will be a true blessing.
When ATMs, automated teller machines, were introduced in India in 1987 by HSBC, they heralded a new age of freedom for consumers. An equally liberating era will begin from January 2025 when EPF funds will come out of these machines. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
