Key EPF changes on cards: Minimal paperwork, faster access to contributions
With the implementation of revised withdrawal guidelines, members will soon be able to access their EPF funds swiftly using an ATM card;
In a move aimed at simplifying the claim settlement process for EPFO subscribers, the Centre plans to unveil mobile application and debit card facility for them by June this year.
Union Labour and Employment Minister Mansukh Mandaviya stated that work on EPFO 2.0, which involves upgrading the entire IT system, is currently underway and is expected to be finished by the end of January. Following this, the EPFO 3.0 app will be launched by May-June, offering banking facilities to EPFO subscribers.
Notably, this will centralise the entire system, making the claim settlement process easier. It will enable EPFO subscribers to withdraw their provident fund (PF) money directly from ATMs after the settlement.
Watch | EPFO 3.0 | PF withdrawal at ATM, new pension options and more
As per media reports, Mandaviya disclosed that following the release of EPFO 3.0, EPFO will also provide ATM cards to its members. With the implementation of revised withdrawal guidelines, members will soon be able to access their EPF funds swiftly using an ATM card.
ATM card advantage
Under the plan, EPFO subscribers will receive dedicated cards that can be used at ATMs to withdraw savings. The new system allows claimants, beneficiaries or insured individuals to access their claim amounts through ATMs.
Under the EPFO's Employees' Deposit Linked Insurance (EDLI) scheme, the heirs of deceased subscribers are provided with a maximum of Rs 7 lakh. Union Labour Secretary Sumita Dawra told PTI that in the new system, the heir of the deceased EPFO subscriber may also be able to use ATMs to withdraw the money after claim settlement.
At present, EPFO subscribers have to wait 7-10 days for their claims to be settled online. After the settlement, the money is transferred to the beneficiaries' bank accounts.
Centre unveils CPPS
Meanwhile, the Centralised Pension Payments System (CPPS) has been completely rolled out across all EPFO regional offices. Union Minister Mansukh Mandaviya celebrated the launch, calling it a “historic milestone”.
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“This transformative initiative allows pensioners to access their pensions easily from any bank, any branch, anywhere in the country. It removes the need for physical verification visits and streamlines the pension disbursement process,” he said.
“CPPS reflects our commitment to modernizing EPFO services, ensuring convenience, transparency, and efficiency for pensioners. This rollout sets a new standard in pension service delivery, aligning with our vision of a tech-enabled, member-centric EPFO,” he added.