PF Withdrawal: Soon you will be able to withdraw money from your Provident Fund (PF) account through ATM. The government is going to make such arrangements from this month i.e. January itself.
PF Withdrawal: Soon you will be able to withdraw money from your Provident Fund (PF) account through ATM. The government is going to make such arrangements from this month i.e. January. Labor Ministry Secretary Sumita Dawra has made such an announcement recently. She said that such a scheme has been prepared to make access to PF accounts easier for crores of members.
Talking to news agency ANI, Dawra said, ‘We are settling claims quickly and working to simplify the processes so that people’s lives become easier. Such arrangements are being made so that the claimant, beneficiary or insured person can easily get their money through ATM with minimal human intervention.’
Dawra said, ‘The system is constantly improving. You will see a lot of improvement after every two-three months.’
How will PF amount be withdrawn from ATM?
Under the new system, a special PF card will be issued to withdraw money from the PF account. This card will work like a normal bank ATM card. To ensure availability of money in emergency situations, a limit of 50 percent of the amount will be set to withdraw from the PF account.
1. PF withdrawal cards will be linked to the customers’ accounts
2. Money can be withdrawn directly from any ATM
3. Only 50 percent of the amount can be withdrawn from the PF account
Dawra said that the IT system is being upgraded to process PF claims. He said, ‘In order to improve the IT system, unnecessary processes are being removed.’
According to Adil Shetty, CEO of Bankbazaar.com, the facility of withdrawing money from PF account through ATM is a good news for EPFO customers. He told what will be the benefit of this:
1. Easy access: Subscribers will no longer have to visit EPFO offices or go through lengthy procedures. They will be able to withdraw their funds from any ATM easily.
2. Faster transactions: With the ATM withdrawal facility, the delay in transactions due to the old process of PF claim processing will be eliminated. This will help in quick access to funds for emergency needs.
3. Always available: With ATMs available 24X7, subscribers can withdraw money from their PF funds at any time. The service will not be interrupted even during weekends or holidays.
4. Efficiency: Upgradation of IT systems will make transactions easier. This will reduce the chances of errors and make the process more reliable.
5. Financial security: Instant access to PF account funds improves financial stability. This is especially helpful in situations like a medical emergency or sudden expenditure.
Current withdrawal rules
While on the job, employees can withdraw up to 90% of their PF account amount for specific purposes on the EPFO portal, which generally depends on the reasons for withdrawal and years of service. Withdrawals can be made from PF account under the following circumstances:
1. Housing needs: Up to 90% of the amount can be withdrawn from the PF account for purchasing or constructing a house after completing at least 5 years of service.
2. Medical emergency: For medical emergency needs, an amount equal to 6 months’ basic salary and dearness allowance or the employee share with interest, whichever is less, can be withdrawn.
3. Education or marriage: Up to 50% of the employee share with interest can be withdrawn for education or marriage needs after completing 7 years of service.
4. Retirement: If you are above 54 years of age, you can withdraw up to 90% of your PF account one year before your retirement date.
All these withdrawal options are aimed at providing financial support to the subscriber in specific situations in his life while ensuring that the savings are retained for long-term needs.
The government is taking steps to improve social security for gig workers and platform sector employees as well as all workers. The Code on Social Security, 2020 plans to provide benefits such as medical coverage, disability assistance and provident fund to gig workers.
Apart from this, several other measures have also been taken, which are as follows:
1. Plan to increase the salary limit for EPF eligibility to Rs 21,000
2. Consideration of removing the 12 percent limit on voluntary PF contribution
3. Streamlining the settlement of claims to speed up processing
However, the government has not disclosed any time frame for implementing the new system of social security benefits. But Dawra said that efforts are being made for this. The number of active members of EPFO is currently more than 7 crore. The organization is focusing on modernizing its services so that life becomes comfortable for the subscribers.
