If you are also a salaried class and your PF is deducted every month, then this news is useful for you. For a long time, the Labor Ministry has been working on providing new facilities to EPFO holders. Under this facility, subscribers will soon be able to withdraw EPF money from bank account, UPI or ATM.
For this, the EPF account holder will have to link his account with EPF. A source said that the Labor Ministry is working on a project under which a certain part of EPF will be frozen. The facility of withdrawing the remaining large part from the bank account will be available using different modes like UPI or ATM debit card.
Auto-Settlement Limit Increased to ₹5 Lakh
Sources said that there are some software related challenges in starting the new facility, which are being fixed soon. Currently, EPFO members have to make a claim application to withdraw PF, which takes a lot of time. Under the auto-settlement mode also, PF withdrawal applications are settled electronically within three days of submission without any manual intervention.
Benefits of New EPFO Withdrawal Rules
Earlier, there was a facility to withdraw up to one lakh rupees under the auto-settlement mode. But now it has been increased to Rs 5 lakh. With this change, the process of withdrawing PF will become faster and easier, which will provide great relief to the members.
Auto-settlement facility started during the Covid-19 pandemic
EPFO has increased the limit of PF withdrawal under auto-settlement mode from Rs 1 lakh to Rs 5 lakh. This change has been made on Tuesday. This increase will benefit crores of EPFO members. Now people will be able to withdraw PF money within three days for their needs like illness, education, marriage or house construction.
Let us tell you that EPFO has more than 7 crore members, for them the facility of online auto-settlement was first started during the Covid-19 pandemic. Its purpose was to provide quick financial assistance to people who were struggling with financial crisis.
How to Check PF Balance and Withdraw Online
Till now all EPFO members have to make a claim to withdraw their PF. This is a time taking process and it also puts a lot of burden on EPFO because more than five crore claims are settled every year. To avoid this time-consuming process and reduce the burden on EPFO, a new system is being developed. However, a source also said that EPFO cannot allow its members to withdraw money directly from their PF account because it does not have any banking license.
