Withdrawing Provident Fund (PF) money is about to get much easier! The Employees’ Provident Fund Organisation (EPFO) is introducing a new system where members can withdraw up to Rs.1 lakh using ATMs and UPI. This facility is expected to roll out by June this year and aims to provide faster access to funds.
Currently, withdrawing PF money through online claims takes up to two weeks. However, with the new EPFO withdrawal card, employees will be able to withdraw cash instantly from ATMs or transfer funds using UPI.
Let’s take a detailed look at how this system will work, who can benefit from it, and what the new rules mean for PF account holders.
EPFO Withdrawal Card – A Debit Card for Your PF Account
To make withdrawals faster, EPFO will issue a special ATM card for its members. This card will be linked to their PF account, just like a debit card is linked to a bank account.
How Will It Work?
✅ Withdraw Money from ATMs – Simply use the EPFO ATM card at any ATM to withdraw cash up to Rs.1 lakh.
✅ UPI Transactions – Link your PF account to UPI and transfer money to your bank account in minutes.
✅ Check Balance Easily – Members can also use UPI apps to check their PF balance anytime.
This will save time and reduce paperwork, making PF withdrawals much more convenient.
Why Is EPFO Introducing This Facility?
According to Sumita Dawra, Secretary, Ministry of Labour and Employment, this move is designed to give greater financial flexibility to employees.
Key Reasons for This Change:
✔ Faster Access to Money – No more waiting for two weeks to get your PF money.
✔ Digital Infrastructure Upgrade – EPFO has integrated over 120 databases to make processes smoother.
✔ Automation of Claims – 95% of PF claims are now processed within three days instead of weeks.
With these improvements, EPFO wants to make fund access quicker and more user-friendly.
How to Withdraw PF Money from ATM & UPI?
1. Withdrawing via ATM
➡ Step 1: EPFO will issue an ATM card linked to your PF account.
➡ Step 2: Visit an ATM machine and insert your EPFO ATM card.
➡ Step 3: Enter your PIN and select the withdrawal amount (up to Rs.1 lakh).
➡ Step 4: Withdraw cash instantly.
2. Withdrawing via UPI
➡ Step 1: Link your PF account with your UPI app (PhonePe, Google Pay, Paytm, etc.).
➡ Step 2: Open your UPI app and select ‘Transfer Money’.
➡ Step 3: Enter the amount and transfer it to your bank account.
This instant withdrawal process will be a game-changer for employees who need immediate access to their savings.
PF Withdrawal Rules – How Much Money Can You Withdraw?
The EPFO withdrawal process follows certain rules based on the reason for withdrawal.
1. Unemployment Withdrawal
If you lose your job, you can:
✔ Withdraw up to 75% of your PF balance after 1 month of unemployment.
✔ Withdraw the remaining 25% after 2 months if you remain unemployed.
2. Tax-Free Withdrawals
If you have worked for 5+ years, your PF withdrawals are tax-free.
✔ You can withdraw the full amount without paying any tax.
✔ Even if you worked in multiple companies, the total service period should be 5 years or more.
3. TDS on PF Withdrawals
If you withdraw more than Rs.50,000 before completing 5 years of service, you will have to pay TDS (Tax Deducted at Source):
✔ 10% TDS if you have a PAN card.
✔ 30% TDS if you do not have a PAN card.
✔ No TDS if you submit Form 15G/15H (for lower-income groups).
Knowing these rules will help EPFO members plan their withdrawals wisely.
How Will This Benefit Employees?
The new PF withdrawal system will bring several advantages for millions of EPFO members across India.
1. Faster Access to Money
Currently, PF withdrawals take up to 2 weeks via online claims. With ATMs and UPI, members can access funds instantly.
2. Financial Flexibility
Employees will no longer depend on employers or lengthy approval processes to withdraw their PF money.
3. Easy Fund Transfers
Instead of waiting for claim approvals, members can simply use their ATM card or UPI app to withdraw money whenever needed.
4. Improved Digital Infrastructure
EPFO has invested in automation and database integration, reducing claim processing times from weeks to just three days.
What Should You Do Next?
✔ If you are an EPFO member, stay updated about the launch of this facility in June 2025.
✔ Keep your PF account details updated to ensure smooth UPI linking.
✔ If you are planning a PF withdrawal, check the latest rules and tax implications before proceeding.
This new facility will make PF withdrawals simpler, faster, and more accessible, ensuring that employees can use their hard-earned savings whenever needed.
