EPFO will soon launch an innovative system for Provident Fund (PF) withdrawals through Unified Payments Interface (UPI), representing a landmark development for India’s workforce.
The Labour and Employment Ministry recently granted approval to a proposal from National Payments Corporation of India (NPCI), an umbrella organisation responsible for retail payments and settlement systems in India.
Sumita Dawra, Secretary of the Ministry of Labour and Employment, told ANI exclusively that PF members will soon be able to withdraw funds via UPI and ATM before May or June this year.
Dawra noted that by May-end or June, members will experience a revolutionary transformation in accessing their provident funds. They’ll be able to view their account balance directly on UPI, instantly withdraw up to Rs1 lakh through an automated system and select their bank account of choice for transfecitons.
The secretary noted that the organization had significantly expanded withdrawal options to provide greater financial flexibility for members. They now can withdraw funds for housing, education and marriage purposes in addition to sickness provisions.
“EPFO has made significant advances in digitalizing its processes, integrating over 120 databases to streamline withdrawal. Claim processing time has been drastically decreased to three days; 95% of claims are now automated with plans underway to further streamline this process,” announced Secretary.
Dawra stated that pensioners have also seen positive outcomes from recent reforms. Since December, 78 lakh pensioners have enjoyed increased flexibility by being able to withdraw funds from any bank branch across India; geographical restrictions previously placed upon pension withdrawals such as being limited to only certain bank branches have now been removed altogether.
Dawra noted the challenges in reforming EPFO were numerous and difficult, due to their massive scale – evidenced by its membership base of 7.5 crore active members with 10-12 lakh joining each month across its 147 regional offices nationwide.
Secretary Dawra noted that these reforms align with Prime Minister Narendra Modi’s goal of “ease of living” for employees and employers alike. This initiative seeks to streamline social security processes, modernize IT infrastructure, and offer greater financial ease for India’s workforce.
UPI and ATM-based PF withdrawals will mark a pivotal moment in India’s digital financial transformation, providing unparalleled convenience for millions of working professionals.
