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For crores of employed employees of the country, Employees Provident Fund Organization (EPFO) is bringing such a big facility which will change the entire experience of withdrawing money from Provident Fund (PF). EPFO uses its most modern and new digital platform EPFO 3.0 Is in the final stages of launching. After the introduction of this new system, PF account holders will get freedom forever from long paper processes and visiting offices. Now you will be able to transfer PF money directly to your bank account through any UPI app in your mobile or UPI-enabled ATM.
There are many questions in the minds of people regarding this new and hi-tech service that how much amount can be withdrawn in this way and will the entire balance be withdrawn immediately? Let us understand in very simple words all the important terms and conditions related to EPFO 3.0.
What is EPFO 3.0 and how will it work?
EPFO 3.0 is actually a mega-digital initiative of the retirement fund body (EPFO). Its main objective is to make all PF related transactions completely paperless, transparent and fast. In the present system, after making PF claim, it takes several days for the money to reach the bank account, but in the new system this work will be done almost instantly.
Labor Minister’s big statement:
Union Labor Minister Mansukh Mandaviya confirmed this facility and said that the technical testing of UPI based PF withdrawal system has been successfully completed. Now members will be able to withdraw PF amount directly into their secured bank account using their linked UPI ID and UPI PIN, which they can use for digital payments or withdrawal of cash from ATM.
Can the entire balance be withdrawn immediately? Know its limit
The biggest confusion regarding the new rules is whether the entire money can be withdrawn as soon as the UPI facility is introduced? The answer is- No. Keeping in mind the financial security of employees in old age, EPFO has set some strict and clear rules for this:
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50% to 75% withdrawal only: Under the proposed EPFO 3.0 framework, a member will be able to withdraw only 50 per cent to a maximum of 75 per cent of his total deposited PF corpus as advance through digital mode (UPI/ATM).
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25% minimum balance mandatory: According to the rules, at least 25% of your total PF contribution must always remain in your account. The government is doing this so that due to emergency, your entire retirement savings are not exhausted at once.
Auto-settlement limit increased to ₹5 lakh
Taking another big historic decision, EPFO increased the auto-settlement limit of advance claim. Increase from ₹1 lakh directly to ₹5 lakh Is done. This means that if you claim PF advance up to ₹5 lakh for the following reasons, the computer system will automatically approve it within a few hours without any human intervention:
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In case of serious illness or medical emergency
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For higher education of children
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For marriage expenses of self or siblings/children
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For purchasing a new house or constructing a house on the land
Step-by-step process to withdraw money from UPI
When this feature officially goes live for the general public, all you need to do is follow these simple steps:
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step 1: First of all, members will log in to their upgrade portal or app, where they will see their total available ‘Withdrawable Amount’.
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Step 2: After this you will have to enter the amount you require (within the prescribed limit).
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Step 3: You have to select the verified UPI ID linked to your PF account.
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Step 4: Once you enter your secret UPI PIN, the money will be credited directly to your registered bank account in real-time.
The government is going to announce the official launch date of this revolutionary service very soon, after which a big worry of crores of salaried employees of the country will be removed forever.