EPFO UPI Withdraw: The Employees’ Provident Fund Organization (EPFO) has reportedly tested the feature that will allow subscribers to withdraw their Provident Fund (PF) money directly to their bank accounts
via the UPI payment gateway. According to PTI report citing Labour Minister Mansukh Mandaviya, the testing of the facility has been completed, referring to the PF money to user’s bank account via UPI.
Mandaviya said that “We have completed the testing of the facility where members can withdraw EPF (employees’ provident fund) through the use of the UPI payment gateway. The withdrawn amount will be directly transferred into the bank account of the member.”
Subscribers, however, may not withdraw their entire sum as a certain portion will remain frozen under the option.
How Will UPI-Based Withdrawal Work?
Members will be allowed to use their linked UPI PIN to complete transactions, ensuring a secure transfer of money. Once credited to bank accounts, the funds can be freely used for digital payments or withdrawn through ATMs using debit cards.
Reducing Heavy Administration Burden Of Settlement
At present, EPFO subscribers are required to file withdrawal claims to access their own provident fund money, a process many members find time-consuming. While EPFO has introduced an auto-settlement mode, under which claims are processed electronically within three days, members still need to submit applications.
The limit for auto-settlement of claims has already been increased to Rs 5 lakh from Rs 1 lakh, enabling faster access to funds for purposes such as illness, education, marriage and housing. EPFO had first introduced online auto-settlement of advance claims during the COVID-19 pandemic to provide quick financial assistance to members facing distress.
However, despite these reforms, more than five crore EPF claims, mostly withdrawal-related, are settled every year, putting a heavy administrative burden on the organisation. The new UPI-based system is being developed to reduce this load and eliminate the need for claim filing altogether.
