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In a major development for salaried employees across India, the Employees' Provident Fund Organization (EPFO) is gearing up to launch a new ATM-based withdrawal facility for Provident Fund (PF) account holders starting June 2025. This move is aimed at simplifying access to PF funds and reducing the long waiting period usually associated with withdrawal requests.

The new feature will allow employees to withdraw their PF balance directly from ATMs, much like withdrawing cash from a regular savings account. But how exactly will this system work? How much money can one withdraw? Here's what we know so far.

PF Withdrawal via ATM: What You Need to Know

According to the latest information from EPFO sources, account holders will be allowed to withdraw up to 50% of their total PF balance through ATMs. This limit has been introduced to ensure the safety and sustainability of the fund in its initial rollout phase.

Key highlights of the new ATM facility:

• Withdrawal Limit: Initially capped at 50% of the PF account balance.

• Eligibility: Applies to employees, account holders, and nominees.

• Purpose: To offer faster and more convenient access to funds, especially during emergencies.

This update is part of EPFO’s broader goal to digitize and streamline PF services for its millions of users.

No More Long Waiting Periods

Traditionally, withdrawing money from a PF account could take several days—sometimes even weeks—due to manual processing and approval delays. With the ATM integration, the waiting time will be drastically reduced, providing instant access to funds when needed most.

This feature will be especially beneficial during medical emergencies, sudden job loss, or financial crises, where immediate liquidity is critical.

What Happens in Case of the Account Holder’s Death?

The ATM withdrawal facility will also be accessible to nominees or legal heirs of a deceased PF account holder. In such cases, they will be allowed to withdraw funds from the ATM, including any insurance amount received under the Employees’ Deposit Linked Insurance (EDLI) Scheme.

Under the EDLI scheme:

• The family of the deceased member is entitled to an insurance cover of up to ₹7 lakh.

• This insurance amount, along with the PF balance, will be available for withdrawal via ATM.

This ensures quick financial assistance to families during challenging times without needing to navigate a lengthy claim process.

What to Expect Going Forward

While the current withdrawal cap is set at 50%, EPFO may revise this limit in the future based on how smoothly the system functions and user feedback. The goal is to eventually make PF funds more flexible and user-friendly, encouraging digital adoption and financial self-reliance.

As we await the official rollout, EPFO is expected to announce further technical and procedural guidelines, including how PF-linked ATM cards will work, authentication procedures, and withdrawal limits per transaction.

Final Thoughts

The ATM-based PF withdrawal facility is a transformative step in India’s social security landscape. By merging technology with employee benefits, EPFO is making it easier than ever for users to access their hard-earned savings.

For now, PF account holders should:

• Keep an eye on official updates from EPFO.

• Ensure that KYC details and nominee information are up to date.

• Prepare for this feature by linking their PF account with an