EPFO 3.0: Pension Fund May Soon Allow ATM Withdrawals, UPI Payments

The Employees’ Provident Fund Organisation (EPFO) is all set to announce a new set of reforms under the title of EPFO 3.0 in October. This will be a game-changer for everyone, as it will enable seamless bank-like transactions like partial amount withdrawal from the provident fund account directly from ATMs or the usage of Unified Payments Interface (UPI)  

 Pension Hike Under Consideration 

Additionally, there is a likelihood of raising the minimum pension amount from Rs.1,500 to Rs.2,500. This has been a long-pending demand of the trade unions because of rising living costs. The EPFO Central Board of Trustees seems to have finally decided to address their demand.  

Meeting to Finalise Agenda 

Union Labour and Employment Minister, Mr. Mansukh Mandaviya is expected to chair the Central Board of Trustees meeting regarding this matter on October 10-11. As per an official indication, the government is planning to announce certain benefits before the commencement of the festive season for over eighty million subscribers of the EPF scheme. This move would undoubtedly drive up household consumption before Diwali.  

Concerns over Withdrawals 

The CBT is considered to be the highest decision maker of EPFO, with representatives from the employers as well as employees. The trade unions may resist the proposal of partial withdrawal of EPFO via banks and UPI as they believe that by allowing this facility, the purpose of savings is entirely defeated. For many, a provident fund is often seen as a retirement kitty for many subscribers. On the other hand, EPFO claims the proposal is meant to enhance efficiency and accessibility of its subscribers.  

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