Starting this month, you can withdraw PF funds from ATMs; here is how EPFO ​​3.0 will work..

The Employees' Provident Fund Organization (EPFO) is soon set to introduce a major convenience for its millions of account holders. By the end of May, a facility allowing the withdrawal of PF funds via ATMs and UPI is expected to go live. This will enable approximately 78 million subscribers to access their funds instantly, without the burden of excessive paperwork.

**EPFO 3.0 to Revolutionize the PF Withdrawal Process**
This new feature is an integral part of the 'EPFO 3.0' project. Its primary objective is to make the entire PF-related ecosystem simpler, faster, and completely digital. It is anticipated that this system will be fully implemented by mid-2026. Once operational, services such as PF claims, account transfers, and withdrawals will become significantly easier than ever before.

**No More 10-20 Day Waits: Funds to be Received in Just a Few Days**
Under the EPFO ​​3.0 framework, claims amounting to up to ₹5 lakh will be settled automatically. Consequently, the claim processing time is expected to drop from the current 10–20 days to a mere 2 to 5 days. For accounts verified via Aadhaar, there will be no need to upload photographs of passbooks or cheques; the entire process will remain completely paperless.

**How ​​to Withdraw PF Funds via ATMs and UPI?**
Under the new system, the EPFO ​​will issue a special ATM card to its members, which will be directly linked to their respective PF accounts. Using this card, members will be able to withdraw cash directly from ATM machines. Additionally, PF funds can be transferred to a bank account using UPI-based applications such as PhonePe and Google Pay. In the initial phase, the withdrawal limit is likely to be capped at ₹1 lakh.

**Automatic PF Transfer Upon Changing Jobs**
EPFO 3.0 will also bring relief to individuals who switch jobs. Now, the PF balance will be automatically transferred from the previous employer to the new employer. This eliminates the need for repeated follow-ups or visits to the company's offices.

**Who is Eligible for This Facility?**
Accessing the facility to withdraw PF funds via ATMs and UPI comes with certain prerequisites. The member's Universal Account Number (UAN) must be active, and it is mandatory for the UAN to be linked with their Aadhaar, PAN, and bank account. If an employee loses their job, they can withdraw up to 75% of their PF balance after one month. The remaining 25% can be withdrawn after two months.

How advisable is it to make withdrawals from one's PF?
Experts state that the PF constitutes one of the most critical savings instruments for retirement. The compounding interest earned on it helps build a substantial corpus over the long term. Consequently, it is considered prudent to make withdrawals only when necessary.

Tax Rules on PF Withdrawals
If an employee has completed a cumulative service period of 5 years, no income tax is levied on PF withdrawals. This service period can be fulfilled by combining employment stints across one or more companies.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.