Employees’ Provident Fund Organization (EPFO) is set to revolutionize provident fund (PF) withdrawal process by introducing e-wallet access and ATM withdrawals.
This employee-friendly initiative aims to make withdrawals faster and more convenient for millions of employees across India.
EPFO PF Withdrawal: Current Process and Challenges
Currently, employees have to rely on EPFO portal to receive their PF funds online.
The settled funds are transferred to linked bank account within 7-10 days, after which funds can be withdrawn via ATM or bank.
However, this process can be time-consuming and inconvenient for many employees, especially those in urgent need of funds.
In a significant announcement on December 18, 2024, Ministry of Labor and Employment Secretary Sumita Dawra revealed that EPFO and Employees’ State Insurance Corporation (ESIC) members will soon be able to use e-wallets to receive their PF claim funds.
This move aims to provide instant access to funds and improve convenience for employees.
Benefits of the New System and Implementation Timeline
The introduction of e-wallets for PF claims will offer several benefits.
Employees will have real-time access to their PF claims, eliminating the need to wait for funds to be transferred to their bank accounts.
Direct withdrawals from ATMs will reduce reliance on banks and provide increased flexibility for accessing funds.
This system aims to make PF withdrawals as easy as withdrawing cash from an ATM, with no lengthy processes involved.
While a specific timeline has not been announced, these changes are expected to be introduced next year.
EPFO is collaborating with bankers and Reserve Bank of India (RBI) to finalize the plans and ensure smooth implementation.
Efforts are already underway to develop the necessary strategic plans to implement these services.
The new system will significantly benefit employees by providing instant access to their PF claims. It will also reduce the time and effort required to withdraw funds.
This will be particularly helpful for employees in urgent need of funds, allowing them to access their money quickly and conveniently.
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