EPFO to weigh ATM, UPI-linked withdrawals; pension hike on agenda: Report

The central board of trustees is also likely to examine the long-pending demand of trade unions to raise the minimum pension—currently fixed at Rs 1,000 per month—to a higher band of Rs 1,500–Rs 2,500

The Employees’ Provident Fund Organisation (EPFO) is set to take up the EPFO 3.0 initiative in its October meeting, with proposals to introduce bank-like facilities such as seamless fund withdrawals via ATMs and even the option of using provident fund balances for UPI payments, according to an Economic Times report.

The central board of trustees is also likely to examine the long-pending demand of trade unions to raise the minimum pension—currently fixed at Rs 1,000 per month—to a higher band of Rs 1,500–Rs 2,500, ET noted.

The meeting, chaired by labour and employment minister Mansukh Mandaviya, is scheduled for October 10–11. While the agenda is yet to be finalised, people familiar with the matter told ET that the government wants to roll out some benefits for nearly 8 crore EPFO subscribers ahead of Diwali in a bid to boost consumption.

As the top decision-making body of EPFO, the central board includes representatives of employers, employees, state governments and the Centre. However, ET said that the proposal for bank or UPI-linked withdrawals may face pushback from unions, which argue that provident fund savings are meant for retirement and should not be diluted through liberal withdrawal options.

Currently, the Employees’ Provident Fund & Miscellaneous Provisions Act already permits advance withdrawals of up to ₹5 lakh for specific needs such as housing, marriage, education, or medical emergencies. These claims, processed under the auto-claim facility, are settled within three days without human intervention, ET reported.

At present, withdrawals typically take two to three days to process via NEFT or RTGS. The new proposal to enable instant access through ATMs is part of the EPFO’s broader reform agenda designed to enhance convenience, improve efficiency, and ultimately make life easier for subscribers, according to ET.