At the India 2047 Entrepreneurship Conclave, Union Minister Dr. Mansukh Mandaviya shared important updates on Provident Fund (PF) withdrawals.
The government is preparing to link PF accounts with UPI, allowing employees to withdraw their funds directly from ATMs by March.
This move is expected to make the withdrawal process simpler and faster.
Withdraw Up to 75% of Your PF Without Any Reason
Currently, withdrawing PF can be a cumbersome process, with multiple forms and approvals.
Dr. Mandaviya explained that PF is an employee’s hard-earned money, and the government has simplified the rules.
Now, employees can withdraw up to 75% of their PF balance without providing any reason.
This change will make it easier for people to access their money when needed, especially during emergencies or for personal use.
Why 25% of PF Remains in the Account
The remaining 25% of the PF balance is retained to ensure continuity of pension benefits.
For example, if an employee leaves a job after a few months and withdraws the entire PF, then rejoins a company later, their PF continuity breaks.
Keeping 25% of the balance helps maintain eligibility for pension, which requires 10 years of continuous service. It provides financial security until employees find a new job.
How ATM and UPI Withdrawals Will Work
The government is linking PF accounts to bank accounts, Aadhaar, and UAN, and integrating them with debit cards and ATMs.
Once fully implemented, employees can:
Withdraw 75% of their PF funds directly from ATMs
Access funds anytime without filling lengthy forms
Avoid paperwork and delays
This step is part of the government’s effort to digitally simplify PF withdrawals and make the system more user-friendly for employees.