The Employees’ Provident Fund Organisation (EPFO) is contemplating a new set of reforms under EPFO 3.0 for better and more flexible means for Provident Fund money to be used by subscribers. Some of these reforms include ATM withdrawals and UPI-based transactions for PF balances. Many of these proposals are also expected to be decided upon in the EPFO board meeting scheduled in October 2025.
Proposed Changes
These are some major proposals that will very likely be tabled:
- PF withdrawals through ATMs and UPI: In the very near future, subscribers could be able to withdraw part of their PF balance against an ATM card linked to their PF account or online transfer using UPI.
- EPFO 3.0 changes: Under this version, further avenues would also be streamlined for claim updates, digital corrections, aadhaar-UAN linking, etc.
- Minimum pension hike: Normally, for months, pension recipients might be paid around Rs.1,000, but the proposal being weighed is to increase it to about Rs.1,500 to Rs.2,500 per month. Trade unions have been demanding this since ages.
Timeline And Decision Making
A crucial meeting is scheduled on October 10-11, 2025, when the Central Board of Trustees under EPFO shall consider and approve the proposed changes. Labour & Employment Minister Mansukh Mandaviya is expected to preside over these deliberations.
Janata Govt would have been keen to see some of the key features implemented before Diwali, as at that time, the general populace appreciates some sort of greater financial flexibility.
Who Will Benefit & What To Know
- These measures will allow digital withdrawal of funds through ATMs/UPI and enhanced digital accessibility among 80 million+ PF accounts holders (subscribers).
- In a nutshell, they will give some liquidity to the PF in times of dire need, thus allowing people to access emergency funds much faster.
- Trade unions have, however, raised concerns that during easier withdrawals, PF could be weakened in its presence if frequent misuse occurs.
Potential Challenges & Key Issues
- Implementation of ATM cards linked to PF accounts and their integration with UPI shall constitute a challenge from the technical, security, and regulatory perspectives.
- Aadhaar-UAN linking has to stay updated when PF members want to use the newly added features.
- The question of how much should be allowed for withdrawal in the first place; and against misuse or over-withdrawal will, of course, be a subject of discussion.
What To Expect
If given a go-ahead, the subscribers should then see ATM withdrawal, partial PF withdrawal, and UPI transfer features rolling out just in time for Diwali. Chances are that pension hike will also be announced in the same meeting. Stay tuned for official govt. Notification post the October board meeting.
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