Easier PF withdrawals soon! EPFO set to ​​introduce instant withdrawals via BHIM app

New Delhi: Employees' Provident Fund Organization (EPFO) is going to provide immediate PF withdrawal facilities to more than 30 crore beneficiaries in the next two to three months through the BHIM app. According to a Times of India report, the move is aimed at enhancing convenience and flexibility for more than 30 crore members so that they can withdraw the PF amount immediately. This facility is similar to ATM withdrawal service and is at the heart of the digitalization of the retirement fund body, which manages more than 26 lakh crore. EPFO has collaborated with NPCI and under this initiative withdrawals for health, education and special circumstances can be made directly to the bank account linked to UPI.

EPFO is planning to provide opportunities to more than 30 crore beneficiaries to withdraw funds instantly from their PF accounts using the BHIM app. This initiative is expected to start in the next 2 to 3 months. Under this new initiative, you can claim PF advance in health, education and special circumstances. As of now, this feature will only work on BHIM, but later it can be extended to other UPI apps. After making the claim, it will be confirmed and authenticated in the backend by the EPFO, after which the amount will be deposited immediately through the State Bank of India. The sanctioned amount will be directly credited to the UPI linked bank account of the member.

Officials indicated that a cap may be imposed on the withdrawal amount, at least initially, to prevent misuse. The entire amount cannot be withdrawn through the BHIM app as RBI has set its own limits on UPI withdrawals. The limit has not been set yet.

The amount sanctioned for transfer will be credited directly to your UPI linked bank account. Currently, this feature is available only on the BHIM app. However, this feature could be extended to other UPI-based fintech applications in the future. Officials have said that the withdrawal amount will be kept limited in the beginning to prevent misuse of this facility. Currently, the settlement of online advance claims processed in automatic mode for an amount less than 5 lakh rupees takes at least three working days, whereas claims of larger amounts or those requiring manual processing take longer.

You can withdraw funds from your PF account at the time of retirement or on specific occasions like unemployment, medical emergency, education or housing needs. Eligibility terms and withdrawal limits vary depending on the reason and your service period.

Retirement: After attaining the age of 58 years or more.

Unemployment: If you have been unemployed for two consecutive months. After one month of unemployment, you can withdraw up to 75 percent of the PF balance, and the remaining 25 percent can be withdrawn after two months.

Permanent disability: If you are permanently and completely disabled and unable to work.

Permanent migration abroad: If you are permanently transferring to another country.

Medical: For critical illnesses of you, your spouse, children or parents. No minimum circumvention is mandatory.

Home Requirements: One can withdraw PF for buying or constructing a house or land after five years of service, repaying the home loan after three years of service, renovating the house after five years of construction completion.

Education: For post-matriculation education of you or your children after seven years of service.

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Marriage: For the marriage of your own or your children or siblings after seven years of service.

Natural Disaster: To deal with financial hardship caused by natural disasters.