ATM facility for EPFO withdrawal:Employees’ Provident Fund Organization (EPFO), is planning to bring a big facility for its members. Soon EPFO account holders will be able to withdraw money from their accounts through ATM card. This facility is part of EPFO’s IT infrastructure upgradation project.EPFO 3.0 Will be presented under. The first phase of this scheme is expected to be completed by December 2024, while the facility can be fully operational by June 2025. According to a report, under this new facility, account holders can be given the facility to withdraw up to 50% of their EPF funds directly through ATM. No approval will be required in this process. Its purpose is to give account holders more control over their money. However, all the details and terms and conditions related to the implementation of this facility are yet to be officially disclosed.
Union Labor Secretary has indicated
According to some reports, Union Labor Secretary Sumita Dawra has reportedly said that the Labor Ministry is upgrading the IT infrastructure to provide better services to the employees. He further said that soon claimants, beneficiaries or insured individuals will be able to withdraw their claim amount through ATM. According to the report, a limit can be set for the amount to be withdrawn, which can be up to 50 percent of the amount deposited in the employee’s EPF account. According to PTI, he has sent an e-mail to the Labor Ministry seeking information in this regard, to which the reply was not received till the time of writing this news.
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Why is this change being brought?
EPFO officials said that the purpose of this new facility along with IT upgradation is to make this entire process more transparent and convenient. Currently, withdrawing EPF funds requires approval at multiple levels, which can be a bit complex and time consuming. But when EPFO account holders will get the facility to withdraw their money using ATM card, then these problems will end.
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Automatic Claim Settlement System
EPFO has introduced Automatic Claim Settlement System during the last few months to improve the settlement of claims. Under this new initiative, claims related to education, marriage or housing up to Rs 1 lakh are being settled without any human intervention. This system not only makes the entire process faster, but it also reduces many types of irregularities including the scope for corruption. EPFO is also taking steps to make its system more transparent and secure. According to the news of Indian Express, recently, due to corruption allegations, 12 officers were prematurely retired, while 18 others were suspended.
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Why is this change special for members?
Crores of EPFO members will benefit from this new facility. After the implementation of the new system, they will not need to wait for long to use the funds deposited in their EPF account. Additionally, the implementation of a more transparent digital system will also increase people’s confidence in the entire process. With the introduction of ATM card facility in EPFO, crores of employees will get more financial freedom and convenience than before. However, to avail this facility, completion of IT upgradation is necessary. This change will not only modernize the EPFO system, but will also enable employees to access their funds quickly and easily when needed.
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Plan to make pension contribution flexible
EPFO is also planning to make contribution flexible in the Pension Scheme (EPS). Under the current rules, employees contribute 12% of their basic salary to EPF. But under the new scheme, employees can be allowed to increase or decrease their contribution as per their wish. This step will be beneficial for those who want to make changes in their retirement plan as per their personal needs. In this proposal, employees will have the freedom to contribute more or less to the Employee Pension Scheme (EPS) than the existing limit of 12%. Giving this information to The Indian Express, an official said, “Some people may want to contribute 10% of their salary for pension, someone else may like 15% contribution. Some people may want to contribute for a few years.” If you want to stop it after contributing till then, this flexibility should be given to the employees and EPFO is working in this direction.
