EPFO NEW UPDATE: This is great news for salaried employees. The Employees’ Provident Fund Organisation (EPFO) has prepared to completely change the process of withdrawing money from the provident fund (PF). Now, there will be no need to fill out lengthy forms or wait for several days. Under the new system, PF funds can be transferred directly to the account via UPI in just a few seconds. This facility is being launched in collaboration with NPCI. Initially, this service will be available on BHIM UPI, and later, other apps like Paytm, PhonePe, and Google Pay will also be integrated. This will provide great convenience to millions of PF account holders, especially in emergencies.
How was the PF withdrawal process before?
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Until now, employees had to fill out various forms to withdraw PF money. This was followed by bank verification and checks at multiple levels. This entire process took several days, and sometimes even weeks. Employees faced considerable difficulties due to not being able to access their money when needed.
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What will change in the new system?
Under the new rules, employees will be able to link their UPI ID to the EPFO portal. After this, whenever they need to withdraw money from their PF account, the transaction can be done directly through UPI. This will ensure that the money reaches the account instantly. The entire process will be digital, eliminating paperwork and making it easy to track the claim status.
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How will employees benefit?
PF withdrawal through UPI will save time and eliminate the need to repeatedly visit the office or the portal. The money will be credited directly to the employee’s account, increasing transparency. UPI transactions are secure, and a record of every transaction is easily available. This facility will prove to be a great help for medical expenses, children’s education, or any sudden household needs.
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UPI Limits and Security Measures
RBI’s UPI limits will apply to PF withdrawals. The daily limit for normal transactions will be up to one lakh rupees. For medical, education, and some specific needs, this limit may be up to five lakh rupees. Necessary security measures will also be implemented to prevent misuse. This will make the claims process secure and reliable.
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A major step towards Digital India
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This change further strengthens the vision of Digital India. According to Union Labour Minister Mansukh Mandaviya, this system will eliminate paperwork and make withdrawing provident fund money easier than ever before. This will reduce claim rejections and make the entire process more transparent.
Relief for the middle class
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The provident fund is considered the biggest savings instrument for the middle class. The new facility will provide immediate access to funds in case of emergencies. Initially, the system can be used for withdrawing small amounts, and later it will be useful for larger sums as well. For this, employees must keep their KYC updated and link their UPI to the EPFO portal or app. This change will make the provident fund almost as easy and liquid as a bank account and will also strengthen retirement planning.