EPFO 3.0 Launch: EPFO is planning to make PF withdrawals more easy soon with this new EPF 3.0 system. This new era will roll out in June 2025. This upgrade will help all EPFO members to take out their PF money instantly through ATMs and UPI. After that there will not be any need for online forms and long approval waitings.
After this big move over 9 crore members can access their savings quickly just like your bank account. It also will grow governments Digital India goal by using UPI and ATM based EPFO transactions.
Instant PF Withdrawals with EPFO 3.0
EPF 3.0 will provide fully digital system that allows all EPFO members to withdraw their PF instantly. To use this new service a employee must activate their Universal Account Number UAN and also link their Aadhaar Number. Employees Aadhaar should also be connected to their bank account for smooth, fast and secure transaction.
Every EPFO Member will get a special PF withdrawal card which will be similar to ATM card. Which can be used to withdraw their funds easily. The expected withdrawal limit will be ₹1 lakh or 50% of the your total PF balance. But EPFO is still not confirmed the final rules through any official notification.
Current PF Withdrawal Process vs New EPF 3.0
Currently Every EPF member need to fill out online claim forms on EPFO website to withdraw money. Official settlement time for this transaction is around 20 days. But nowadays many people facing longer waiting times because of administrative delays. EPF 3.0 will change this by allowing instant fund withdrawal through new PF ATM Cards and UPI apps. In this new Era we will move from a slow process to a fast digital system.
Tax Rules for ATM PF Withdrawals
ATM based PF withdrawals will be fastest but it will not be always tax free. As per income tax laws this type of PF withdrawals are exempt only if five years of continuous service completed. Early withdrawals will be taxed as per EPFO Norms.
Implementation Timeline and Future Outlook
EPFO 3.0 is expected to launch in June 2025 but still no any official confirmation is given for the same. Before the full rollout first trail rollout will be taken. This new system is expected to benefit over six crore plus EPF members.