EPFO Update – Withdraw PF Money from ATM Will Tax be Reduced? Here’s the update

By Samira Vishwas On Mar 23, 2026

New Delhi: The government is set to introduce a new facility for PF subscribers. Now, EPFO members will no longer have to face hassles when withdrawing their PF funds. They will even be able to withdraw their PF money through ATMs. This ATM withdrawal facility is being introduced under ‘EPFO 3.0’ and is expected to prove to be a significant boon for PF subscribers.

An ATM card will be issued specifically for PF withdrawals, enabling subscribers to access and withdraw their funds. Munab Ali Baig, Head of Compliance Advisory Practice at Core Integra, has shared these key details. He stated, “An ATM card can be utilized just like a standard bank debit card. This allows for the withdrawal of funds from one’s EPF account during times of need.

How much can be withdrawn instantly?

According to experts at the EPFO, subscribers can instantly withdraw up to 75 percent of their PF balance using an ATM. This process is designed to be hassle-free. To do so, they will simply need to specify the reason for the withdrawal—such as a medical emergency, home construction, or unemployment—to access their PF funds.

Kunal Kabra, Founder of Kustodian.Lif noted that the EPFO has not yet officially confirmed the specific mechanics of how this ATM withdrawal facility will function, nor has it specified the withdrawal limits. It also remains unclear under which specific sections of the regulations withdrawals will be permitted. He added, “We estimate that this facility will allow for withdrawals of up to 75 per cent of the balance—or a maximum cap of ₹1–2 lakh—to cover medical expenses and other personal emergencies.

Nevertheless, this is being viewed as a significant development. Experts also point out that this initiative is primarily focused on enhancing convenience rather than offering additional tax benefits; the tax treatment applicable to amounts withdrawn from your EPF account will remain exactly the same as before.

What is the interest rate?

The Central Government has approved an interest rate of 8.25 per cent for EPF subscribers for the financial years 2025 and 2026. In the preceding financial year (2024–2025), the government had similarly provided an interest rate of 8.2 per cent. While there were expectations of an interest rate hike this time around, the rate was ultimately maintained at the same level.