EPFO Considering ATM Withdrawal Option: Here’s How Much You Can Currently Withdraw

The buzz around the Employees’ Provident Fund Organisation allowing withdrawals through ATMs has sparked interest among account holders. While the government is exploring the possibility of this convenient option, clear guidelines are yet to be released.

In the meantime, EPF members can familiarise themselves with the current EPF withdrawal rules.

The EPF is not just a retirement safety net, it can also be accessed during life’s unexpected events. In April 2024, the EPFO raised the partial withdrawal limit for auto claims processing from ₹50,000 to ₹1 lakh, making it even easier for you to tap into your EPF savings during emergencies.

But the need for funds isn’t limited to medical situations alone; you can also tap into your EPF funds during times of unemployment, for education, or other life-changing events.

In this article, we’ll guide you through the various situations that allow you to access your EPF funds.

What Are the Available EPF Withdrawal Options?

When Are You Eligible to Withdraw From Your EPF?

1. Purchase of House/Flat, Construction of House

You can make a withdrawal to purchase a house, flat, or a site for constructing a dwelling. For the purchase of a site, you can withdraw up to 24 months’ basic wages and Dearness Allowance (DA). If you’re purchasing a house or flat, or constructing a house, you can withdraw up to 36 months’ basic wages and DA, or the total of the employee and employer contributions along with the interest, whichever is the least.

2. Repayment of Loans

For repayment of the loan, the amount you can withdraw is up to 36 months’ basic wages and DA or the combined total of both the employee and employer’s contributions, including interest, whichever is less. This withdrawal is limited to repaying the outstanding principal and interest of the loan, making it easier for you to clear your dues with minimal hassle.

3. Medical Purposes

For your own treatment, you are entitled to withdraw up to 6 months’ basic wages and DA or the employee’s share with interest, whichever amount is less. If the withdrawal is for the treatment of a family member, the conditions remain the same. You would need to provide a medical certificate signed by your doctor and employer as evidence of the medical emergency.

4. Marriage or Post-Matriculation Education

In cases of personal or family-related events such as marriage or the education of your children, partial withdrawal of EPF funds is allowed. You can withdraw 50% of your share in the EPF for your own marriage or your children, once in a lifetime per person. Similarly, if you need funds for your children’s post-matriculation education, you can withdraw from your EPF after presenting a certificate from the educational institution specifying the course and estimated expenditure.

5. Withdrawal Before Retirement

Partial withdrawal from your EPF account within one year of your retirement or superannuation is allowed. If you are nearing retirement, you can withdraw up to 90% of the amount accumulated in your EPF account. This helps you access a significant portion of your savings before retirement, ensuring that you have enough funds for your post-retirement needs or any other urgent requirements you might have as you transition out of employment.

What Are the Special Conditions for EPF Withdrawal?

1. Advances in Special Cases

In special cases, you can access your EPF funds, but the withdrawal is typically limited to the employee’s share along with the interest. If you’ve been discharged, dismissed by your company, or retrenched and the case is pending in court, you can withdraw up to 50% of your share in the EPF fund, subject to the condition that a certificate is provided from the court or employer confirming the status of the case.

2. Physically Handicapped

For members who are physically handicapped, a withdrawal for purchasing equipment would minimise the hardship caused by the disability. You can withdraw up to 6 months’ basic wages and DA or your employee share with interest, whichever is less. This provision is aimed at helping those who need specialised equipment, whether it’s for mobility or other needs, to enhance their daily life. The advance can only be requested once every three years, and a certificate from a doctor confirming the disability must accompany the application.

Conclusion

The EPF is not just a retirement fund, with the recent updates in withdrawal limits, accessing your funds has become easier and more flexible. While EPF ATM withdrawals are still in the works, understanding the current withdrawal options ensures you can tap into your EPF savings when you need it most, empowering you to navigate life’s crucial moments with confidence.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.