The Employees’ Provident Fund Organization (EPFO) is preparing to launch its digital platform, EPFO 3.0. After this launch, PF members will get faster access to services. The new system will facilitate members to transfer their PF funds directly to their bank accounts through UPI.
This initiative will reduce paper work and processing time will also reduce significantly. While the move is being promoted as a major convenience for over 70 million EPFO members, many members are concerned about one important issue: How much money can actually be withdrawn from the EPF account, and is it possible to withdraw the entire amount? Here, the withdrawal rules under EPFO 3.0 are explained in detail.
**How much money can you withdraw?**
Under the proposed EPFO 3.0, and subject to applicable terms and conditions, members may be allowed to withdraw 50% to 75% of their EPF funds through UPI or UPI-enabled ATMs. This retirement institution currently does not allow withdrawal of the entire EPF balance in most cases, and is not expected to allow full withdrawal in the future. This is because the institution reserves a portion of the fund specifically for retirement purposes, to ensure that these savings remain available to support you in your post-retirement years.
**Withdrawal rules under EPFO 3.0**
**Withdrawal Limit:** Members will generally be able to withdraw 50% to 75% of their total EPF balance through the digital withdrawal facility.
**Mandatory Minimum Balance:** At least 25% of the total amount deposited in the EPF account must be maintained in the account. The purpose of this rule is to ensure that retirement savings are not completely depleted.
**Self-settlement limit:** EPFO has increased the self-settlement limit for advance claims from ₹1 lakh to ₹5 lakh. This means that eligible claims up to ₹5 lakh can be processed automatically in a very short time frame.
Under what circumstances can funds be withdrawn?
Emergency funds can be withdrawn for purposes such as health emergencies, higher education, wedding expenses and buying or building a house.
When will EPFO 3.0 be launched? Labor Minister Mansukh Mandaviya recently said that testing of the UPI-based withdrawal system has been completed, and it is expected that the facility will be launched soon. Earlier this month, the minister had said, “We have completed testing of the facility through which members can withdraw EPF funds using the UPI payment gateway.” The withdrawn amount will be directly transferred to the member’s bank account.