In a significant leap towards improving banking services for its members, EPFO is considering a groundbreaking move that will transform its operations in the near future. Soon, you may be able to withdraw money from your account during emergencies without the need for paperwork or approval from authorities. However, specific withdrwal limits will be maintained, which is still not revealed. The conditions
The labour ministry is in the process of modifying rules to allow members to directly take out cash through special ATMs for the purposes through self approval process. Whereas, documents required to avail of such partial withdrawals will have to be digitally uploaded. The ministry is in the discussions with the Reserve Bank Of India(RBI) to facilitate the change.
Can Employees Withdraw Their Savings While Employed?
NO, you can’t withdraw from their savings while still in employment but there are exemptions for personal emergencies. However, according to changes being worked on, a member can self approve his/her claim for emergency withdrawal within permissible limits. The upcoming changes in the IT system will be in line with recommendations from the Ministry of Finance, the Central Reserve Bank, and other banking institutions. EPFO has received a wealth of suggestions to help members withdraw a specified amount during emergencies without the hassle of paperwork.
List of Emergencies
The conditions for partial withdrawal of PF amounts include wedding, medical expenditures, home loan repayments, education needs, and renovation or construction of a house. Moreover, a member can also withdraw the entire fund if they have been out of employment for two months in a row since the last job.
How Will It Work?
The entire process will function similarly to traditional banking. Members will be able to log in using their Universal Account Number (UAN) and password via the portal or app, facilitating immediate transfers to their bank accounts. Once the funds are transferred, members can access them through debit cards, net banking, or UPI, effectively allowing EPFO to operate like a bank.
To make this happen, EPFO will link all major banks with the UAN, making the fund transfer process through ATMs much simpler. The Labour Ministry aims to have the IT System 3.0 up and running by June, incorporating feedback from key financial institutions to ensure the best possible improvements.
