EPFO members are likely to soon be able to access their provident fund money directly to bank account via the Unified Payments Interface (UPI) payment gateway, Labour Minister Mansukh Mandaviya said. He added that the testing of the facility was done and that the ‘best and right way’ was reached with EPFO in this. Responding to a media query, Minister Mansukh Mandaviya said that the members will be able to log into theEPFO portal, click on the ‘withdrawal of EPF/net balance’, and authenticate the transaction via UPI PIN.
The money will then be transferred into members’ bank accounts, which they could use for digital payments or transfer of money. They can also withdraw the money via ATMs.
Under the proposed system, a portion of a subscriber’s EPF balance will remain frozen, while a significant part will be made available for withdrawal. Members will be able to view the eligible amount in their seeded bank account linked with EPFO.
How will EPF withdrawal using UPI work?
Currently, EPFO members have to file their PF claim online for withdrawal of money. The process takes some time due to procedural checks. The new UPI system is about to make the process instant, especially with respect to the urgent financial requirements of the members.
The move will surely benefit more than seven crore EPFO members across India from the provision of savings in emergencies like medical expenses, education, marriage and other requirements without depending upon the manual processing.
What improvements has EPFO already introduced?
Even before the UPI rollout, EPFO has improved its auto-settlement system for claims. Under this mechanism, withdrawals are processed electronically without manual intervention, usually within three days. The limit for auto-settled claims has also been increased from ₹1 lakh to ₹5 lakh.
Will EPFO services become more digital in the future?
Yes. The labour ministry is also planning to expand EPFO services through platforms like WhatsApp. Users may soon be able to check PF balance, track claim status, and access account services more easily through messaging apps. If implemented fully, the UPI-based withdrawal system could significantly change how employees access their provident fund, making it faster, simpler, and more user-friendly.
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