EPFO begins testing ATM-based withdrawals, facility likely to launch by December

The move is significant as PF withdrawals are currently largely routed through EPFO’s claim-settlement process, requiring members to initiate claims and wait for the amount to be credited to their bank accounts.

The ministry had earlier indicated that members could be allowed to withdraw up to 75 per cent of their eligible PF balance while retaining a portion of their savings to protect their long-term retirement corpus.

The remaining 25 per cent must stay in the account and continue to earn tax-free interest.

The proposed digital withdrawal mechanisms are intended to reduce paperwork and waiting times for members while making the process more transparent.

The move follows a series of reforms undertaken by EPFO to simplify withdrawal procedures.