EPFO set for a Major Upgrade: Flexible Savings and Instant PF withdrawals through ATMs

The Employees’ Provident Fund Organization (EPFO) is poised to introduce ground-breaking upgrades through EPFO 3.0 slated for roll-out in June 2025. The upgrade will allow Provident Fund (PF) users to withdraw their savings using ATM cards thus bringing EPFO services closer to the banking experience. Other features include a revamped Mobile App, flexible pension options with enhanced digital security, faster claims, and better service. EPFO 3.0 represents a major leap that introduces a host of new features and reforms aimed at simplifying processes, reducing paperwork, and empowering employees to manage their PF accounts independently.

What is EPFO 3.0?

EPFO 3.0 is the upcoming phase of digital transformation introduced by the EPFO to make PF management more user-friendly, transparent, and efficient. Once these reforms are rolled out, employees can self-correct personal details such as name, date of birth, and marital status directly through the EPFO Portal. This will significantly reduce administrative time delays.

In addition to this, Provident Fund account transfers will no longer require verification by the employer due to the introduction of Aadhaar–based OTP authentication. Another rather interesting upgrade is the introduction of an EPFO ATM card that enables instant PF withdrawal through ATMs. The upcoming EPFO 3.0 Mobile app provides on-the-go account management, faster claim processing, and seamless access to retirement savings. Once rolled out, the system is expected to benefit millions of salaried employees who contribute to the EPF scheme.

Salient features of EPFO 3.0

EPFO 3.0 introduces a range of innovative features to streamline processes, enhance user convenience, and reduce administrative delays, thus empowering employees to manage their PF accounts.  This Employee Provident Fund Update is poised to change the way the funds are used and managed by the members.

• User-Friendly Interface: The proposed revamp of the EPFO website will offer a robust, interactive, and user-friendly interface for seamless navigation and easier management of Accounts.

• Self-correction of Personal Data: EPF members can now independently correct discrepancies or make changes in personal information like name, date of birth, gender, nationality, etc., directly through the EPFO Portal. This eliminates the need for employer approval or supporting documents in most cases.

• ATM cards for instant EPF withdrawals: EPFO members will issue ATM Cards to members that function as debit cards. Members can directly withdraw their EPF savings from ATMs, offering Instant P.F withdrawal process in India, a first of its kind in the country. This will provide instant access to funds thus reducing the hassle of waiting for approval.

• EPFO Mobile App: A new Mobile App is to be launched that will streamline the management of EPF Accounts. Through this Mobile App, members can check account balances, file claims, and access a wide variety of services. This is a one-stop solution for all EPFO-related tasks.

• Reduction in PF Transfer time: Members can now file their PF transfer claims directly with EPFO using Aadhaar-based OTPs without employer intervention. This will significantly reduce the delays in transferring PF accounts when switching jobs.

• Self Attestation features: EPFO proposes to introduce a self-attestation feature that will allow members to complete the Know Your Customer (KYC) process without the approval of the employer.

• More Efficient Pension System: Employees are allowed to choose higher voluntary contribution towards Pension. The system also proposes support to the pension system that will make it more efficient with focus on addressing the delays in issuing pension payment orders.

• Seamless User Experience: EPFO 3.0 aims to make all the processes starting from Account Management to filing of claims and transferring funds, more efficient, user-friendly and faster.

How do the EPFO 3.0 ATM Cards work?

EPFO ATM card is a revolutionary update being introduced in EPFO 3.0 that enables withdrawals from EPF accounts. As of now, members have to wait anywhere between 7 to 10 days for withdrawals from the EPF account. The process required either online or offline requests and employee attestation.

With the new features, members can access their PF accounts directly from designated ATMs for instant access of their funds without waiting for approval from employers. EPFO ATM withdrawal thus eliminates lengthy waiting time, and offers the much-needed convenience and instant access to their savings.

The EPFO ATM card functions like a regular Bank ATM card and allows members to withdraw up to 50% of their total savings in the PF accounts without lengthy approval processes. Similar to Bank ATM transactions, EPFO ATM transactions will require authentication via OTP, PIN, or Biometric verification for added security.

EPFO Mobile App

The proposed launch of the EPFO Mobile App through EPFO 3.0 is set to be a game-changer. The EPFO Mobile App will make it easier to manage your EPF account. It will allow you to quickly check your account balance, track contributions, and file claims from the convenience of your living room or when on the move through your Smartphone. The user-friendly interface is designed to save both time and effort, making it easier to have full control of your retirement savings and manage your account on the go. Regardless of whether you are at home or on the move, everything you need will be at your fingertips.

Flexibility in Pension Contributions

EPFO 3.0 proposes changes in Pension contributions by making it more flexible. Currently, EPF contributions are fixed at 12% of the Basic salary plus Dearness Allowance, split equally between the employee and employer. One part of the contribution goes into the Employees’ Pension Scheme (EPS). Under EPFO 3.0 the following changes are proposed.

1. Employees are allowed to choose higher voluntary contributions towards Pension.
2. They are given the flexibility to opt for different pension schemes.
3. Enhancing benefits under EPS based on contribution levels.

This is EPFO’s new flexible savings scheme that aims to enhance retirement savings and provide employees with greater financial control and independence.

Self-Correction of Member Personal Details:

Currently, members have to depend on employers to correct discrepancies in the personal information on the EPFO Portal, resulting in undue delays and added Administrative pressure. However, with the EPFO’s new features, members can access their personal details and correct discrepancies without the requirement of supporting documents. The high volume of grievances is primarily related to member profiles and Know Your Customer (KYC) issues. This is nearly 27% of total complaints. These proposed changes aim to drastically reduce these grievances. For example, errors in details like father’s name, spouse name, etc., or nationality that hitherto required online requests and supporting documents, can now be quickly and efficiently updated, thus streamlining the entire process.

Eliminating delays in PF Transfers

For long, there has been a demand to reduce the delays in transferring PF Accounts when members switch jobs. Currently, employer verification is a key step often resulting in significant delay. On an average, the employers took 12 to 13 days to submit transfer claims to the EPFO. As per records, over the past 9 months nearly 20 lakh claims were held up with employers for more than 15 days.

EPFO 3.0 allows employees with fully compliant e-KYC EPF accounts to file transfer claims directly with the EPFO using Aadhaar-based OTPs, without requiring employer intervention. The proposed change is expected to significantly reduce transfer claim processing time by doing away with the bottleneck of employer verification.

EPFO 3.0 – Launch Timeline

Initial announcements revealing formal details about EPFO 3.0 began circulating in early 2023 highlighting the process of digitization and self-service enhancements. As a pilot phase which is still ongoing, certain features like online PF transfer and partial self-correction are already available like under EPFO 2.0.

According to official timelines, EPFO 3.0 is scheduled to be fully operational by June 2025 and will culminate in the complete roll-out of the new infrastructure that includes the EPFO ATM Card system, a revamped Mobile App, and flexible pension contributions.

Conclusion

EPFO 3.0 symbolizes an important step towards modernizing India’s Provident Fund Infrastructure. The aim is to deliver a hassle-free experience that benefits employees across the country, and this is emphasized in user autonomy, instant access to funds, digital security, and streamlining the entire workflow. Even though a few challenges remain, especially in implementing robust security measures and ensuring widespread digital literacy, the long-term prospects suggest a more robust, transparent, and member-friendly system.

In simple terms, EPFO 3.0, the latest updates on EPFO Reforms, is a comprehensive digital overhaul of the EPFO platform, that is designed to provide members greater control over their accounts, introduces ATM-enabled withdrawals and streamlines PF transfer with reduced paperwork.

GetifyHR is a highly reputed Payroll and Statutory Compliance Service Provider with years of experience in handling matters relating to Payroll and Statutory Compliance that includes Employees Provident Fund.  We are fully geared to handle all the proposed changes and will be able to fully support all our valued clients and the employees once these changes are notified. We are there to lend a shoulder to all these changes and all forthcoming changes in all aspects of Payroll Processing, HR Management and Statutory Compliance requirements.