Is the Centre Preparing to Allow PF Withdrawals via ATMs Soon?
Synopsis
The government is trialing a new system for PF withdrawals through ATMs and UPI, expected to launch in April. This move aims to simplify and modernize the EPF withdrawal process, enhancing accessibility for employees across India.
Key Takeaways
The government is trialing PF withdrawals via ATMs and UPI.
Implementation is expected in April.
EPF contributions are 12% from both employees and employers.
Current interest rate for EPF is 8.25%.
EPFO is evolving with technology-driven services.
New Delhi, Feb 9 (NationPress) The government is currently conducting trials with banks to facilitate employees' provident fund (PF) withdrawals through automated teller machines (ATMs), with an expected implementation date set for April to enhance service accessibility.
In addition to ATMs, withdrawals from the employees' PF will also become possible via the unified payments interface (UPI), as reported by NDTV Profit citing sources from the Labour Ministry.
However, no official announcement has yet been made by the government.
This initiative aims to simplify the EPF withdrawal process, which traditionally requires multiple forms to be filled.
Currently, the EPF scheme mandates that employees contribute 12% of their basic salary and dearness allowance every month, with employers matching this contribution. The interest rate for the fiscal year 2025-26 is set at 8.25%.
Recently, Labour and Employment Minister Mansukh Mandaviya revealed plans to transform both new and existing EPFO offices into modern, technology-driven, Passport-Seva-Kendra-style single-window service centres, allowing citizens to address any EPF-related issues at regional offices nationwide.
This initiative is part of a broader reform effort aimed at enhancing EPFO services across the country.
Mandaviya also mentioned the introduction of EPF Suvidha Providers to facilitate access for workers, especially first-time users and those unfamiliar with digital systems. These providers will guide members in accessing benefits and resolving issues, bridging the gap between citizens and the EPFO.
He stated, "The EPFO manages a fund corpus of Rs 28 lakh crore and offers an annual interest of 8.25%. If workers' funds are with the EPFO, it is backed by the guarantee of the Government of India."
Further explaining the reforms, he noted that the EPFO is continuously advancing with streamlined, technology-based processes—settlements up to Rs 5 lakh are being processed automatically, withdrawals up to 75% of the EPF balance are easily permitted, and account transfers have become seamless. EPF-related issues can now be resolved at any EPFO regional office regardless of the member's home location.
The Labour Ministry is also set to implement four new Labour Codes on April 1.
Point of View
This initiative reflects the government’s commitment to enhancing accessibility and efficiency in financial services for workers. As reforms progress, it is crucial to ensure that all citizens can benefit from these advancements, particularly those unfamiliar with digital platforms.
NationPress
9 May 2026
Frequently Asked Questions
What is the expected launch date for PF withdrawals via ATMs?
The government is aiming to implement PF withdrawals via ATMs in April.
Will PF withdrawals be available through other means?
Yes, PF withdrawals will also be accessible via the unified payments interface (UPI).
What percentage of an employee's salary is contributed to the EPF?
Employees contribute 12% of their basic salary and dearness allowance to the EPF, with employers matching this contribution.
What is the current interest rate for EPF?
The interest rate for the EPF has been set at 8.25% for the fiscal year 2025-26.
What innovative services are being introduced by the EPFO?
The EPFO is introducing EPF Suvidha Providers to help members access benefits and resolve issues effectively.
