Withdraw PF Funds via ATMs: The dream of withdrawing the hard-earned money deposited in the Provident Fund from the ATM is going to come true in the new year 2025. The central government is preparing to launch this scheme in the early months of the new year. To prepare a roadmap for this, the Ministry of Labor and Employment will soon discuss with the banking sector regulator Reserve Bank of India (RBI) and the country’s leading banks. The government’s aim is to promote ease of living for the 7 crore subscribers of EPFO. Not only this, the government is also seriously considering linking the digital wallet with EPFO, in which the processed claim amount will be deposited and the subscribers will be able to withdraw it easily.
PF Claim will be Processed Quickly
The central government wants to improve the digital infrastructure of the Employees Provident Fund Organization. Before allowing the withdrawal of Provident Fund money from ATM. The government will revamp the digital infrastructure of EPFO and only after that the scheme will be launched. The Labor Ministry wants to speed up the approval system along with reducing the processing time of Provident Fund claims so that the problems faced by the subscribers can be reduced. However, even after allowing the withdrawal of Provident Fund money from ATM, the amount can be withdrawn only after getting approval from EPFO as per the existing rules.
There will be a Limit on Withdrawing PF Money from ATM
The approval process for withdrawing money from Provident Fund will be automated, along with this the interference of EPFO office will be reduced. The ministry has not yet decided the limit for withdrawing Provident Fund money. But it is certain that a limit will be fixed for withdrawing money from ATM. However, no final decision has been taken yet to allow withdrawal of only 50 percent of the total PF balance from ATM.
Digital Wallet will be Linked with EPFO
The government is also seriously considering linking digital wallet with EPFO in which the processed claim amount will be deposited and withdrawn. However, no decision has been taken on this and RBI’s advice will be taken regarding this.
Technology will Simplify the Claim Process
Due to the software upgrade of EPFO, there has been a 30 percent increase in the claim process of subscribers in August-September. The government is going to make the new EPFO Information Technology System 2.01 operational in the next two months. This will speed up the claim process even more. In the new system, the claim settlement system will be centralized. Which includes auto processing of claims, centralized monthly pension disbursement, universal account number based EPF accounting. In the new system, the rules for transfer of member ID on changing jobs can also be abolished.
PF Withdrawal Income Tax Rules
If an employee completes 5 years of service in a company and withdraws PF. Then there is no income tax liability on him. The period of 5 years can also be combined with one or more companies. It is not necessary to complete 5 years in a single company. The total period must be at least 5 years.
If the employee withdraws more than Rs 50,000 from the PF account before completing 5 years in the job, then he will have to pay 10% TDS. On the other hand, if you do not have a PAN card, then you will have to pay 30% TDS. However, if the employee submits Form 15G/15H, then no TDS is deducted.
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EPFO Withdrawal Card will be Similar to ATM
Under this facility, Provident Fund (PF) users will be able to withdraw the amount deposited in their account through ATM machine. For this, a special card will be issued to the Provident Fund account holder which will be exactly like a debit card. A media report has expressed hope that this service will start from January 2025. According to sources, under the new provisions, 50% of the total deposit amount of PF can be withdrawn from a card like ATM.
75% of PF Money can be Withdrawn After so Many Days of Losing the Job
Under the rules for withdrawing money in PF account. If a member loses his job, then he can also withdraw 75% of the amount from the PF account after 1 month. With this, that person can fulfill his needs during unemployment. The remaining 25% deposited in PF can be withdrawn after about two months of leaving the job. Ever since the facility of withdrawing PF amount from ATM has been announced for EPFO members. The members of the Employees Provident Fund Organization have become confident of easy access to their money at the time of need.
