How much PF savings can you withdraw using UPI

How much PF savings can you withdraw using UPI

The Employees' Provident Fund Organisation (EPFO) is gearing up to make it easier for subscribers to access their provident fund savings.

The retirement body is introducing a new system, dubbed EPFO 3.0, that will let subscribers transfer funds directly to their bank accounts through the Unified Payments Interface (UPI) payment gateway.

This move will cut down on paperwork and drastically reduce waiting times for withdrawals.

But how much money can actually be withdrawn? Let's find out.

What is EPFO 3.0?

EPFO 3.0 is a major digital upgrade initiative by the EPFO to enable subscribers to withdraw or transfer their Provident Fund (PF) money instantly and without any paperwork.

The new system will do away with processing delays and allow subscribers to access and transfer their provident fund savings directly through UPI and UPI-enabled ATMs.

This means you won't have to wait long for your money after applying for a withdrawal anymore.

How much money can you access?

Under the new system, subscribers can withdraw 50% to 75% of their EPF balance via UPI or UPI-enabled ATMs, depending on applicable conditions.

However, at least 25% of your total EPF contribution must remain in the account as a mandatory buffer at all times.

The auto-settlement limit has also been increased from ₹1 lakh to ₹5 lakh, allowing many EPFO members to access their funds within three days for urgent needs like medical treatment or education.

How to use the new system?

The new system will be a major benefit for the over seven crore members of the EPFO.

Subscribers will be able to see their eligible EPF balance available for transfer into their seeded bank accounts.

They can use their linked UPI PIN to complete the transaction and ensure a secure transfer of money into their bank accounts.

Once transferred, members can use it as they wish, like making electronic payments or withdrawing cash at bank ATMs with debit cards.