EPFO to Introduce ATM Cards for PF Withdrawals Starting FY 2025-26

The Employees’ Provident Fund Organisation (EPFO) is set to implement major updates to its services in the upcoming fiscal year, aiming to simplify retirement savings management for employees across sectors. These initiatives will benefit both private and public sector workers by offering enhanced features for provident fund (PF) accounts, according to official reports.

Starting in the 2025-26 financial year, EPFO plans to roll out ATM cards for subscribers, enabling round-the-clock access to PF funds. This feature will allow users to withdraw money instantly, eliminating the current waiting period of 7-10 days for bank transfers. The move is expected to significantly improve fund accessibility and convenience for members.

A key policy change under consideration is the removal of the Rs 15,000 cap on EPF contributions. At present, employees contribute 12 per cent of their basic salary to their PF accounts, with contributions capped at the specified limit. The proposed update would allow contributions based on an employee's full salary, potentially increasing savings for those earning above the threshold.

EPFO is in the process of upgrading its IT infrastructure to streamline withdrawal processes. The enhanced system, expected to be operational by June 2025, aims to expedite claim settlements while reducing manual intervention. These improvements are designed to increase transparency, minimize fraud, and deliver a more efficient experience for account holders.

Another significant change under review involves expanding investment options for EPF members. Currently limited to Exchange-Traded Funds (ETFs), EPFO is considering allowing direct equity investments. This proposal could provide members with greater control over their portfolios, potentially offering higher returns and diversified investment opportunities. If implemented, this shift would mark a major development in how members can grow their retirement savings.

For pensioners, EPFO is introducing measures to make pension withdrawals more convenient. Under the proposed changes, retirees will be able to access their pensions from any bank across India without additional verification. This update is intended to save time and increase flexibility for pensioners nationwide.