Big news has emerged for Provident Fund (PF) account holders.
At ABP Network’s India 2047 Entrepreneurship Conclave, Union Labour and Employment Minister Dr. Mansukh Mandaviya shared important updates about PF withdrawals.
The government is preparing to link PF accounts with UPI.
Once this is done, employees will be able to withdraw PF money directly from ATMs.
This new system is expected to be in place before March and aims to make the entire withdrawal process faster and simpler.
Up to 75% PF Can Be Withdrawn Without Any Reason
During the event, the minister was asked whether employees would be allowed to withdraw up to 75% of their PF amount without giving any reason.
Dr. Mandaviya explained that PF is the hard-earned money of employees, deducted from their monthly salary.
Earlier, withdrawing PF was a lengthy and tiring process involving multiple forms and details.
To reduce this burden, the government has gradually simplified the rules.
Now, employees are allowed to withdraw up to 75% of their PF balance without needing to provide any specific reason.
Why Is 25% of PF Amount Kept Locked?
The minister also clarified why 25% of the PF amount is not allowed to be withdrawn.
He explained that this portion is kept to maintain job continuity.
For example, if an employee leaves a job after a few months and withdraws the entire PF amount, their service continuity breaks.
Since at least 10 years of continuous service is required to qualify for pension, keeping 25% of the PF amount acts as a safety net.
It helps employees stay protected while they search for a new job and keeps their pension eligibility intact.
How PF Withdrawal Through UPI and ATMs Will Work
Dr. Mandaviya confirmed that the government is fully ready to connect PF with UPI and ATM services.
Currently, PF accounts are already linked with bank accounts, Aadhaar, and UAN.
The next step is to integrate PF access with debit cards and ATMs.
Once implemented, employees will be able to withdraw up to 75% of their PF balance anytime through ATMs.
This move is aimed at eliminating paperwork and making PF access completely digital.
The government believes that linking PF with digital platforms will save time, reduce hassle, and make life easier for millions of employees across the country.
