EPFO New Rules: Big Update for Employees! Can 100% of PF be withdrawn through UPI? What are the new rules of EPFO?
PF withdrawal via UPI : Employees Provident Fund Organization (EPFO) will soon bring a big change for lakhs of working people in the country. Under EPFO 3.0, the PF withdrawal process is going to be simpler and faster than before. Till now, withdrawing PF funds involved a lengthy process, verification of documents and days of waiting. However, once the new system is implemented, members will be able to transfer funds directly to their bank accounts through UPI. This will not only reduce the paperwork, but also significantly reduce the time required for PF withdrawal.
Test completed
The government and EPFO aim to make the entire process digital and paperless, so that employees do not have to visit the office frequently for their own money. Interestingly, testing of this facility has been completed and may be launched soon. However, the official launch date has not been announced yet.
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The biggest question is, how much can EPFO members withdraw from their accounts? Under the new system, members will be able to withdraw approximately 50% to 75% of their total EPF balance. However, withdrawal of the entire amount will not be allowed in all circumstances. As per EPFO rules, minimum 25% balance in the account is required as security deposit for future. So, if a member has ₹4 lakh in his account, he can withdraw a maximum of ₹3 lakh, while the account must have a minimum balance of ₹1 lakh.
Additionally, EPFO has also increased the auto-settlement limit. Earlier, only claims up to ₹1 lakh were settled expeditiously; Now this limit has been increased to ₹5 lakh. This means, members will be able to withdraw large amounts in a short period of time for medical emergencies, children’s education, marriage or home purchase and construction. In many cases, this amount can be credited to their account in just 3 days.
Union Labor Minister Mansukh Mandaviya recently announced that the trial of the UPI-based PF withdrawal system has been completed. Under this new facility, members will be able to view the withdrawable amount in their account and transact instantly using their UPI PIN. The money will be transferred directly to their bank account, allowing members to make online payments or withdraw cash from an ATM.
The biggest benefit of EPFO 3.0 will be that employees will no longer have to wait long for small expenses or urgent needs. Currently, the PF claim process sometimes takes weeks, but this new system can make it as easy as digital banking.
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EPFO has more than 70 million members in the country and this change could bring relief to lakhs of employees. This facility can be very useful especially for the youth and digital payment users. In the future, withdrawing PF can be as easy as sending money using UPI today.
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