EPFO: There’s some great news for millions of working people across the country. The Employees’ Provident Fund Organization (EPFO) will soon simplify advance PF withdrawals. Employees will now be able to withdraw their PF funds instantly through the BHIM UPI app. This feature will provide significant relief to millions of people in times of emergency.

This major digital transformation of the EPFO ​​will benefit approximately 300 million members across the country. The EPFO ​​currently holds over Rs 26 lakh crore in PF deposits and is working to make it more user-friendly.

What is the new facility of EPFO?

EPFO has developed this system in collaboration with NPCI. Using the BHIM app, EPFO ​​members will be able to file advance claims for specific categories, such as health issues, education, marriage, or other special circumstances. Upon filing, the EPFO ​​will verify the claim in its backend, and if all is in order, the approved amount will be immediately transferred to the member’s UPI-linked bank account.

This transfer will be done through the State Bank of India. This means that the PF funds will be disbursed immediately, just like withdrawing money from an ATM. Initially, this feature will be available only on the BHIM app, but may later be available on other UPI-based fintech apps as well.

PF money will be credited to your account right away

Withdrawing a PF advance is quite difficult at the moment. Even submitting an online auto-mode claim for amounts up to Rs 5 lakh (around $500,000 USD) requires at least three working days. Claims for larger sums or those that need manual processing take even longer. In urgent situations, like medical emergencies or unexpected expenses, this delay can be quite troublesome. However, this new service is set to change that. Funds will be credited to accounts instantly, offering relief to individuals.

When will this service be available?

Nonetheless, certain precautions have been implemented. At first, complete withdrawals of the entire PF balance will not be allowed. A limit will be established based on the RBI’s UPI transaction cap to avoid misuse. The specific amount for instant withdrawals is still under consideration by the EPFO. Officials mention that instant withdrawals come with some risks, so the system will be gradually enhanced. This feature is expected to be launched within the next two to three months.

This initiative is part of EPFO’s broader digital transformation. The organization aims to streamline every PF-related service, making them quicker and more user-friendly. This new facility will be incredibly beneficial for the millions of employees who consistently contribute to their PF each month, especially when they find themselves in urgent need of funds.

What used to take days will now be accomplished in just minutes. This will not only save time but also boost public trust. EPFO’s initiative reflects the government’s and the organization’s dedication to employee convenience. More innovative features are anticipated in the near future. Overall, this is a significant benefit for millions of families, further enhancing their financial security.