Employed people have the Employees’ Provident Fund (EPF) in which a fixed amount is deposited from their monthly salary. The company also deposits the same amount into the account. For a long time, employees have had to wait over a week to withdraw money from this account. However, the Employees’ Provident Fund Organisation (EPFO) has completed testing of EPFO 3.0, which aims to make PF services seamless and faster. EPFO 3.0 is a modern digital initiative that aims at eliminating delays in PF transfers and withdrawals. This system will soon allow account holders to withdraw money via ATMs and UPI. According to reports, the facility is expected to be rolled out by the end of this month. Union Labour Minister Mansukh Mandaviya has already stated that the announcement regarding the rollout will be made soon.
EPFO 3.0 AMT Withdrawal Amount
According to reports, EPFO account holders are expected to be allowed to instantly withdraw up to 75 per cent of their EPF balance to a bank account via UPI and UPI-enabled ATMs.
The new system, which has been developed in partnership with the National Payments Corporation of India (NPCI), is reportedly complete.
Under this facility, PF account holders will be able to receive funds instantly into their bank accounts via UPI by logging in with their UAN number and verifying with an OTP. This money can also be withdrawn through an ATM or UPI.
Will the pension be reduced if money is withdrawn from an ATM?
Meanwhile, employees are curious whether frequent withdrawals would affect their pensions. However, the government has clarified that this facility will not affect the pension (EPS) of account holders.
“This ATM withdrawal facility applies only to your EPF balance, which includes employee and employer contributions. You can withdraw up to 75 per cent of your total PF balance through this method,” the Ministry of Labour clarified.
Your pension money (EPS Account) will be safe. According to the rules, a minimum of 10 years of service (EPS membership) is required to receive a pension after retirement. If an employee leaves a job after 10 years, they can withdraw their pension money. However, even if you withdraw your PF money in between, your service record will not be reset (zeroed). You will remain eligible for pension once you complete 10 years.
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