New Delhi: Members of the retirement fund body EPFO may soon be able to withdraw their provident fund (PF) money directly from ATMs after the settlement.
Currently, subscribers of the Employees' Provident Fund Organisation (EPFO) have to wait for 7-10 days for the settlement of their claims online. After the settlement, the money is transferred to the beneficiaries' bank accounts.
Under the plan, EPFO subscribers will receive dedicated cards that can be used at ATMs to withdraw savings, a top official said, adding that the EPFO is mulling providing services at par with the banking system to its more than 7 crore subscribers.
Union Labour Secretary Sumita Dawra told PTI that the focus right now in EPFO (Employees' Provident Fund Organisation) is to improve the IT infrastructure.
"While improvements are being seen in the last few months, in January 2025 we will see more improvement coming in as a result of hardware upgradation," she said.
The secretary said that efforts are being made to bring systemic reforms that make processes easier and more efficient.
"As part of this modernisation drive, we also aim to compare EPFO systems with the banking systems in India that are in place and are working well. For ease of living, bringing more transparency and ease of claims is also part of the plan," she said.
Under the new system, claimants, beneficiaries or insured individuals will be able to access their claim amounts through ATMs. A maximum of Rs 7 lakh is provided under the Employees' Deposit Linked Insurance (EDLI) scheme run by the EPFO to the heirs of deceased subscribers.
In the new system, the heir of the deceased EPFO subscriber may also be able to use ATMs to withdraw the money after claim settlement. The new systems is expected to be rolled out after completion of a hardware upgrade by the EPFO.
The body is also likely to issue dedicated cards for use by EPFO subscribers to withdraw claim amounts through ATMs. Presently, the EPFO has about seven crore contributing members covered under EPF, pension and group insurance schemes of the retirement fund body.
