EPFO to offer ATM withdrawals for savings, new features from Jan 2025: official
Union labour secretary Sumitra Dawra said that the aim is to have an IT system comparable to global banking systems
New Delhi: Subscribers of the Employees’ Provident Fund Organisation (EPFO), the state-run retirement fund manager, will have quicker access to their savings deposits through ATM withdrawal facilities, an official said.
Ready withdrawal of provident fund savings up to a certain ceiling with an EPFO account-linked ATM card is among several features to be rolled out likely by January 2025, according to the official cited above.
Provident funds provide retirement income for nearly all salaried Indians in the formal sector, with nearly 70 million subscribers. These funds often serve as the primary corpus for the lifetime savings of working people.
“We have reviewed the entire information technology system of the EPFO and are making substantial updates. Our aim is to have an IT system comparable to global banking systems,” said union labour secretary Sumitra Dawra on the sidelines of the Global Economic Policy Forum 2024 last week.
According to data based on transactions via the new system, the ongoing overhaul of the EPFO, including a new advanced software platform, has improved its previously sluggish customer service.
The infrastructure upgrade, called EPFO 2.01, aims to speed up transactions, reduce claim rejections, and shorten turnaround times.
“For the ease of living of claimants, beneficiaries, and insured persons, we’re working to ensure they can access their claims from an ATM with minimal human intervention,” Dawra said.
The savings interest rate offered by EPFO, set at 8.25% for FY24, is a widely watched metric among the salaried middle class.
“The state-run retirement fund manager has often faced complaints from employees, as claims are often rejected when the information in the EPFO database does not match the details provided by a member, due to inconsistencies in information such as the universal account number (UAN), name, date of birth, or bank account details,” said an official.
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Reforms currently being implemented include centralised claim settlements, end-to-end auto-processing, centralised monthly pension disbursements, UAN-based accounting, and a restructured electronic challan-cum-receipt (ECR) with due statements and remittance challans, the official added.
Members can now access their provident fund documents through Digilocker, a cloud-storage app, and file claims through the government’s Umang app. Pensioners can also upload digital life certificates to continue their benefits.
“The revamped processes have already enabled the EPFO to issue pension payment orders on the first day of retirement. Additionally, members can now view their account deposits online. The overhaul has also allowed the EPFO to reduce the average closing time for member appeals to just six days,” said the official.
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