Millions of salaried employees in India could soon receive a major festive gift this Diwali. The Employees’ Provident Fund Organisation (EPFO) is set to deliberate on its ambitious EPFO 3.0 initiative, which promises to make provident fund accounts function almost like bank accounts.

Instant Access to PF Money via ATM and UPI

Under the proposed EPFO 3.0 system, members will no longer need to wait days or weeks to access their provident fund savings. Instead, they could withdraw money instantly through ATMs or UPI-based mobile apps. The feature will allow partial withdrawals of up to ₹1 lakh in emergencies, making it a potential game-changer for over 80 million EPFO subscribers.

At present, members must file online claims for PF withdrawals—a process that often takes significant time. With the upgraded system, all they would need is an activated Universal Account Number (UAN) and Aadhaar-bank linkage. Once enabled, withdrawals for urgent needs such as medical expenses, higher education, housing, or marriage will be available instantly.

Pension Hike Under Consideration

Apart from digital access, the EPFO Central Board of Trustees is also considering a proposal to increase the minimum monthly pension for members. Currently fixed at ₹1,000 per month, the pension could soon be revised to between ₹1,500 and ₹2,500 per month.

This potential hike addresses a long-standing demand from trade unions, which have been pressing for better pension support to improve the social security net for workers, especially in the unorganised and non-government sectors.

Why This Matters

• For employees: Faster and easier access to PF funds during emergencies.

• For pensioners: Improved financial security with a higher guaranteed monthly payout.

• For the economy: Boost to digital financial inclusion as more people integrate PF accounts with digital payment platforms.

The Bigger Picture

If approved, EPFO 3.0 will mark one of the most significant reforms in India’s provident fund system, aligning it more closely with modern banking practices. For employees across private and non-government sectors, the move could offer both financial flexibility and greater retirement security—a timely relief ahead of the festive season.

👉 Bottom Line: The Diwali season could bring a double bonanza for EPFO members—instant PF withdrawals through ATMs and UPI along with a potential pension hike up to ₹2,500 per month. The final decision rests with the EPFO Central Board, which is expected to review the proposal in its upcoming meeting.