The Union Labour and Employment Ministry on Thursday announced a fresh set of reforms under the Employees’ Provident Fund Organisation (EPFO), aimed at making provident fund access easier, faster and more transparent for over 29 crore members. Union Labour and Employment Minister Mansukh Mandaviya said the new measures will cut delays, digitise services and give subscribers greater control over their savings. According to sources, the government is also considering changes to withdrawal rules. These include allowing members to withdraw money up to six times a year and permitting partial withdrawals without giving specific reasons. However, the ministry has made it clear that withdrawals of more than 50 per cent of the balance will not be relaxed.
Banking-style features for PF
As part of the modernisation plan, EPFO 3.0 proposes to allow partial provident fund withdrawals through ATMs and even UPI transactions, in a move aimed at making access as seamless as bank withdrawals. Officials said the idea is to provide members with bank-like services ahead of Diwali, though the proposal may face pushback from trade unions that argue provident funds are meant strictly for retirement security.
Digital upgrade for members
The reforms package introduces a ‘Passbook Lite’ option for members, offering a simplified snapshot of contributions, withdrawals and balances on the portal. A detailed graphical passbook will continue to be available on the existing platform. The ministry also rolled out online access to Annexure K, the transfer certificate needed when employees change jobs. This will allow workers to directly download the certificate, verify balances and keep a digital record for pension purposes.
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Faster settlements, fewer delays
The settlement of claims has long been slowed by multiple approval layers. To fix this, the ministry has delegated more powers to Assistant Provident Fund Commissioners and junior officers. This change is expected to speed up advances, withdrawals, refunds and transfers, especially in emergencies such as health or marriage needs. The Central Board of Trustees, EPFO’s apex decision-making body will also examine a proposal to raise the minimum monthly pension from the present Rs 1,000 to a higher band of Rs 1,500-2,500. Trade unions have long pressed for this revision, citing inflation and rising living costs.
Read More:Â EPFO introduces Passbook Lite and other changes to make members’ experience better
