Withdrawing PF will be a piece of cake! Now, with the BHIM app, you can receive your money in just one click. Learn about the EPFO's new plan

The Employees' Provident Fund Organisation (EPFO) is going to provide instant PF withdrawal facility through the BHIM app to over 30 crore beneficiaries in the next two to three months. 

According to a Times of India report, the move aims to increase convenience and flexibility for over 30 crore members so that they can withdraw their PF amounts instantly. 

This facility is similar to ATM withdrawal service and is at the core of the digitization of the retirement fund body, which manages a corpus of over Rs 26 lakh crore. 

EPFO ​​has collaborated with NPCI and under this initiative, withdrawals for health, education and special circumstances can be made directly into the bank account linked to UPI.

Big changes in PF withdrawal soon

The EPFO ​​plans to offer over 300 million beneficiaries the opportunity to instantly withdraw funds from their PF accounts using the BHIM app. This initiative is expected to launch in the next two to three months. 

Under this new initiative, you can claim PF advances for health, education, and special circumstances. Currently, this feature will only work on BHIM, but it may be expanded to other UPI apps later. 

Once a claim is made, the EPFO ​​will verify and authenticate it in the backend, after which the amount will be instantly deposited through the State Bank of India. The approved amount will be deposited directly into the member's UPI-linked bank account.

Officials indicated that, at least initially, a cap on withdrawal amounts may be imposed to prevent misuse. The entire amount will not be able to be withdrawn through the BHIM app, as the RBI has set its own limits on UPI withdrawals. The limit has not yet been finalized.

Where will the money be transferred?

The approved amount for transfer will be deposited directly into your UPI-linked bank account. Currently, this feature is only available on the BHIM app. However, it may be expanded to other UPI-based fintech applications in the future. 

Officials have stated that the withdrawal amount will initially be limited to prevent misuse of this feature. Currently, online advance claims processed in automatic mode for amounts less than ₹5 lakh take at least three working days to settle, while claims involving larger amounts or requiring manual processing take longer.

How much PF withdrawal can be done?

You can withdraw funds from your PF account at the time of retirement or for specific occasions such as unemployment, medical emergencies, education or housing needs. Eligibility conditions and withdrawal limits vary depending on the reason and your service period.

When can you withdraw the entire amount from PF?

1. Retirement: After attaining the age of 58 years or more.
2. Unemployment: If you have been unemployed for two consecutive months. You can withdraw up to 75% of your PF balance after one month of unemployment, and the remaining 25% after two months.
3. Permanent Disability: If you are permanently and totally disabled and unable to work.
4. Permanent migration abroad: If you are permanently transferring to another country.
5. Medical: For serious illnesses of you, your spouse, children, or parents. There is no minimum service requirement.
6. Housing Requirements: Can be withdrawn for purchase or construction of house or land after five years of service, for repayment of home loan after three years of service, for renovation of house after five years of completion of construction.
7. Education: For post-matric education of you or your children after seven years of service.
8. Marriage: For your own marriage or that of your children or siblings after seven years of service.
9. Natural Calamity: To deal with financial hardship caused by natural calamities.

EPFO