Daijiworld Media Network - New Delhi
New Delhi, Feb 9: In a move aimed at making provident fund access faster and more convenient, the government is conducting pilot trials with banks to enable Employees’ Provident Fund (EPF) withdrawals through ATMs, with plans to roll out the facility as early as April. PF withdrawals are also expected to be made available through the Unified Payments Interface (UPI).
According to a report citing Labour Ministry sources, the initiative is designed to simplify the EPF withdrawal process, which currently requires members to submit multiple forms and complete procedural steps. However, no official announcement has yet been issued by the government.
Under the existing EPF framework, employees contribute 12 per cent of their basic salary and dearness allowance each month, with employers making a matching contribution. For the financial year 2025–26, the EPF interest rate has been fixed at 8.25 per cent.
Labour and Employment Minister Mansukh Mandaviya recently said that the government is undertaking large-scale reforms to modernise EPFO services. As part of this effort, new EPFO offices — along with several existing ones — are being transformed into technology-driven, single-window service centres on the lines of Passport Seva Kendras. This will allow members to resolve EPF-related issues at any regional office across the country, regardless of where their account is registered.
To further improve accessibility, especially for first-time users and those unfamiliar with digital platforms, the government also plans to introduce EPF Suvidha Providers. These authorised facilitators will assist members in accessing benefits and resolving grievances, acting as an interface between workers and the EPFO.
Highlighting the scale and security of the system, Mandaviya noted that the EPFO currently manages a corpus of around Rs 28 lac crore. “When workers’ money is with the EPFO, it carries the guarantee of the Government of India,” he said.
He added that several technology-led reforms are already in place. Claims up to Rs 5 lakh are now settled automatically, members can withdraw up to 75 per cent of their EPF balance more easily, account transfers have been streamlined, and grievances can be addressed at any EPFO office nationwide.
The Labour Ministry is also set to implement the four new Labour Codes from April 1, marking another significant step in overhauling India’s labour and social security framework.