EPFO May Allow ATM And UPI Withdrawals; Pension Hike Under Review
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The Employees’ Provident Fund Organisation ( EPFO ) is preparing to discuss major reforms in its upcoming October board meeting under the EPFO 3.0 initiative. According to reports, proposals include enabling subscribers to withdraw funds directly via ATMs and even linking provident fund balances to UPI payments.
Minimum Pension Hike on the Agenda
Alongside withdrawal reforms, the Central Board of Trustees (CBT) is also expected to deliberate on the long-pending demand of trade unions to raise the minimum pension. At present, the floor pension stands at ₹1,000 per month, but unions have been pressing for an increase to ₹1,500–₹2,500 per month.
Meeting Scheduled Ahead of Diwali
The board meeting, chaired by Union Labour and Employment Minister Mansukh Mandaviya, is scheduled for October 10–11. Sources suggest that the government is keen to announce measures that will benefit nearly 8 crore EPFO subscribers ahead of Diwali, with the objective of boosting consumption.
Possible Pushback from Unions
While the proposals aim to make EPFO more subscriber-friendly, they may not sail through easily. Trade unions have historically opposed liberal withdrawal options, arguing that provident fund savings should remain a dedicated retirement corpus rather than being diluted for day-to-day use.
Current Withdrawal Norms
At present, provident fund withdrawals are processed within two to three days through NEFT or RTGS transfers. The law already allows members to withdraw up to ₹5 lakh in advance for specific needs such as housing, marriage, education, or medical emergencies. These advance claims are settled within three working days under the auto-claim facility, without human intervention.
A Step Towards Instant Access
The proposed system of ATM withdrawals and UPI-enabled transactions is intended to provide instant access to funds, bringing EPFO facilities closer to regular banking services. The move is seen as part of a larger effort to improve efficiency, convenience, and digital integration for members.
If approved, the reforms under EPFO 3.0 could mark a major shift in how subscribers access their provident fund savings. With the twin proposals of faster withdrawals and a potential pension hike, the meeting could bring festive relief to millions of workers. However, the final decision will depend on consensus within the board, balancing convenience with the core objective of preserving retirement savings.
Minimum Pension Hike on the Agenda
Alongside withdrawal reforms, the Central Board of Trustees (CBT) is also expected to deliberate on the long-pending demand of trade unions to raise the minimum pension. At present, the floor pension stands at ₹1,000 per month, but unions have been pressing for an increase to ₹1,500–₹2,500 per month.
Meeting Scheduled Ahead of Diwali
The board meeting, chaired by Union Labour and Employment Minister Mansukh Mandaviya, is scheduled for October 10–11. Sources suggest that the government is keen to announce measures that will benefit nearly 8 crore EPFO subscribers ahead of Diwali, with the objective of boosting consumption.
Possible Pushback from Unions
While the proposals aim to make EPFO more subscriber-friendly, they may not sail through easily. Trade unions have historically opposed liberal withdrawal options, arguing that provident fund savings should remain a dedicated retirement corpus rather than being diluted for day-to-day use.
Current Withdrawal Norms
At present, provident fund withdrawals are processed within two to three days through NEFT or RTGS transfers. The law already allows members to withdraw up to ₹5 lakh in advance for specific needs such as housing, marriage, education, or medical emergencies. These advance claims are settled within three working days under the auto-claim facility, without human intervention.
A Step Towards Instant Access
The proposed system of ATM withdrawals and UPI-enabled transactions is intended to provide instant access to funds, bringing EPFO facilities closer to regular banking services. The move is seen as part of a larger effort to improve efficiency, convenience, and digital integration for members.
If approved, the reforms under EPFO 3.0 could mark a major shift in how subscribers access their provident fund savings. With the twin proposals of faster withdrawals and a potential pension hike, the meeting could bring festive relief to millions of workers. However, the final decision will depend on consensus within the board, balancing convenience with the core objective of preserving retirement savings.
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