New Delhi: The government is working on trials with banks to operationalise employees’ provident fund (PF) withdrawals via automated teller machines (ATMs), with a likely date to make it applicable from April, for ease of service.
The employees’ PF will also be open to withdrawals via the use of unified payments interface (UPI), apart from ATMs, according to an NDTV profit report, citing Labour Ministry sources.
There was, however, no official communication yet from the government.
According to the report, the move is being implemented to further streamline the process of EPF withdrawal, which typically involves filing multiple forms.
Under the current EPF scheme, an employee contributes 12 per cent of the basic salary and dearness allowance every month. The employer contributes an equal amount. The interest rate has been fixed at 8.25 per cent for the fiscal year 2025-26.
Recently, Labour and Employment Minister Mansukh Mandaviya announced that all upcoming and several existing EPFO offices are being redeveloped into modern, technology-enabled, Passport-Seva-Kendra-style single-window service centres, enabling citizens to resolve any EPF-related issue at any regional office across the country.
He said that the step was part of a series of major reforms being undertaken by the government to strengthen EPFO services nationwide.
Mandaviya further added that to enhance access for workers, especially first-time users and those unfamiliar with digital systems, the government will soon introduce the mechanism of EPF Suvidha Providers. These Suvidha Providers will be authorised facilitators to guide members in accessing benefits and resolving their issues, thereby acting as a bridge between citizens and the EPFO.
“EPFO today holds a fund corpus of Rs 28 lakh crore and provides 8.25 per cent annual interest. If workers’ money is with the EPFO, it carries the guarantee of the Government of India,” he said.
Elaborating on reforms, he said that the EPFO is continuously evolving with simplified and technology-led processes — settlements up to Rs 5 lakh are now processed automatically, withdrawals up to 75 per cent of EPF balance are permitted with ease, account transfers have been made seamless, and EPF-related issues can now be resolved at any EPFO regional office across the country, irrespective of the member’s home location.
The Labour Ministry will also put the four new Labour Codes into effect on April 1.
(IANS)
