On EPFO table: Bank-like transactions, other reforms

New Delhi: The Employees’ Provident Fund Organisation (EPFO) is likely to deliberate next month on the EPFO 3.0 initiative, which is aimed at enabling bank-like seamless transactions, including withdrawal of a certain proportion of provident funds through ATMs or using them for UPI payments.

Besides, the EPFO central board of trustees could also consider raising the minimum pension from Rs 1,000 per month to Rs 1,500-Rs 2,500, a long pending demand of the trade unions.

The meeting, under the chairmanship of labour and employment minister Mansukh Mandaviya, will be held on October 10-11 though the agenda is yet to be finalised, people aware of the development told ET.They said the government is preparing to roll out some benefits for nearly 80 million EPFO users ahead of Diwali to give a boost to consumption.

Central Board of Trustees is the highest decision-making body of EPFO and has representatives of employers as well as employees as its members, besides representatives of state governments and the central government. The proposal for allowing partial withdrawal from EPFO through banks and UPI, however, may face stiff resistance from the trade unions who have maintained that the PF is the retirement kitty of the subscribers.

They feel purpose of savings will be defeated if partial withdrawal is allowed through banks for purposes other than already prescribed under the law.

The Employees’ Provident Fund & Miscellaneous Provisions Act provides for advance withdrawal of up to Rs 5 lakh under the auto claim facility for exigencies such as illness, education, marriage and housing within three days without any human intervention.

Currently, the withdrawal process includes a processing time of minimum two-three days and is associated with NEFT or RTGS. The proposal for withdrawal through ATMs is part of the EPFO’s reforms agenda aimed at enhancing efficiency and accessibility to improve the ease of living for its subscribers.