After the surprise, the nuts and bolts. Earlier this week, Union labour secretary Sumita Dawra made a surprise announcement that EPFO (Employees Provident Fund Organisation) can withdraw money from the EPF account, she helped dismantle an image of the EPFO that was rather bureaucratic and slow-paced. Before this announcement, none could really equate EPF, which almost symbolised red-tape despite recent improvements and ATMs which symbolise customer freedom.
While the proposed convenience will be available from January 2025, all EPFO subscribers want to know how it might be possible ie, get the cash directly from ATMs. Two major strands will be making the EPFO system integrated with the ATM network and authenticating the EPFO subscriber/applicant.
EPF withdrawal from ATM: How will it work
Obviously, such a dramatic step involves a lot of IT architecture work that cannot be visible to the common man or any EPFO subscriber. The government is reworking the IT infrastructure so that cash from the EPF accounts is seamlessly available from ATMs.
According to reports, EPFO subscribers will be able to locate and access funds through their Universal Account Number, or UAN and through bank accounts which are linked to the UAN. They need not meander through time-consuming bureaucratic processes to get funds. The EPFO has to link all EPF accounts to a system that is compatible with automated teller machine network of banks.
Authentication of EPFO subscriber crucial
It is clear that if the first step involves linking of the EPF accounts to the ATM networks, the other step involves a full-proof authentication process. Typically authentication processes involve sending OTP that are dispatched to the mobile phone number registered with the EPFO. The authentication step in extremely significant since it has to be a process that ensures rigorous checks so that money cannot be pilfered by someone else other than the EPFO subscriber.
The big benefit will be instant generation of cash in the hands of the EPFO beneficiary. The government will obviously now gradually disclose details about how ATMs are being integrated into the EPFO architecture and how the process will actually roll out.
When, this week, labour secretary Sumita Dawra made the announcement that money from Employees’ Provident Fund (EPF) can be withdrawn from ATMs, everyone was pleasantly surprised. Now the details of the process are awaited. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
