Labour ministry, RBI hold discussions to ease PF withdrawal

THE RETIREMENT FUND MANAGER IS REVAMPING ITS WORK PROCESSES AND IT NETWORK TO HASTEN THE SERVICES

- Zia Haq

The Union labour ministry has begun discussions with the Reserve Bank of India (RBI) and other banks on rolling out new services for subscribers of the Employees' Provident Fund Organisation (EPFO), such as direct access to savings deposits through ATMs and e-wallets linked to bank accounts, an official said, requesting anonymity.

The State-backed retirement fund manager is currently revamping its work processes and information technology network for speedier services following long-standing grievances of cumbersome procedures for settlement of claims and pensions.

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 after the revamp is completed, according to the official cited above. Currently, only in cases of auto settlement of claims does the money go directly to the bank account of a subscriber, which can be then withdrawn from teller machines.