From March 2026, the picture regarding the Provident Fund (PF) could change completely. The government is planning to link EPFO ​​accounts with ATMs and UPI. This would mean that money could be withdrawn directly from PF accounts. It is being discussed that approximately 75 percent of the total accumulated amount could be easily accessible for withdrawal. While this facility sounds like a relief, it raises several questions in the minds of employees regarding its impact.

Where will the money for marriage and a house come from then?
If you withdraw money from the ATM today, what will be left for your children's marriage and house registration tomorrow? PF has always been considered a safety net for old age and a companion during the most difficult times. Therefore, before using this new facility, you need to understand its advantages and disadvantages thoroughly. Let's look at the important aspects of the new PF rules that could change your entire financial planning...

PF: The biggest support during difficult times
Until now, the biggest strength of PF has been that withdrawing money from it was not easy. This is why salaried individuals, even out of compulsion, maintained their savings for a long time. PF was only resorted to during major events like illness, buying a house, children's education, or marriage. Especially for those working in the private sector, PF was the only strong fund that provided the biggest support during difficult times.

Most people are negligent about retirement planning.
The situation regarding retirement planning in India is already weak. Most people do not seriously consider their pension or financial needs in old age during their working years. Government jobs have a pension system, but for those working in the private sector, PF is the only strong option. Despite this, the greatest negligence regarding PF is seen in the private sector.

A large fund is created from small deductions from salary every month.
The small amount deducted from the salary every month accumulates in the PF over the years to create a large fund. If you lose your job, this money reduces the financial shock. If someone in the family falls ill, it is better to use PF for treatment than to take a loan. Whether it's for house registration or children's marriage, middle-class families often rely on this money. Rushing to withdraw PF money from ATMs could prove costly.
However, the picture could change once the facility to withdraw PF money through ATMs and UPI becomes available. When withdrawing money becomes as easy as accessing a bank account, people might start dipping into their PF for even small needs. Buying a mobile phone, shopping, or other non-essential purchases could become reasons for PF withdrawals. Gradually, it could become a habit to withdraw some money from the PF every month after receiving the salary.

Today, people don't hesitate to take loans. In such a scenario, the option of withdrawing money instantly from the PF could become the easiest way out. The result will be that even after working for 20 years or more, only a nominal amount will be left in the EPFO ​​account. The money that was meant to be a support in old age might be depleted prematurely.

What do the statistics say?
The statistics further clarify this danger. According to the rules, both the employee and the employer contribute 12 percent of the basic salary to the PF. A part of this goes to the pension fund, i.e., EPS. In the financial year 2023-24, EPFO ​​had approximately 7.37 crore members. Currently, this number is estimated to be around 8 crore. The total PF corpus of EPFO ​​has reached approximately ₹25 lakh crore in the financial year 2025. This is the country's...

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