EPF Withdrawal Through UPI, New Service Set to Launch in April

by
EPFO UPDATE

EPFO : The EPFO ​​is introducing a major convenience for its millions of members. Employees will now be able to withdraw money directly from their Provident Fund (EPF) accounts through UPI. The funds will be transferred directly to their linked bank accounts. According to reports, this feature could be available as early as April.

The EPFO ​​is currently testing this system. Technical testing is being conducted using approximately 100 dummy accounts to ensure there are no issues before launch. This new feature will also be integrated with the UAN portal and the UMANG app.

Under the new system, members will be able to withdraw up to 75% of their available EPF balance instantly. They will need to log in to the mobile app or the EPFO ​​portal. There, they can request a withdrawal by selecting valid reasons such as illness, education, marriage, or housing.

To transfer the amount, you must verify the payment using your UPI PIN. The money will then be transferred directly to your bank account. Currently, the EPFO’s auto-settlement system settles claims up to Rs 5 lakh within three days. However, the UPI system will allow for almost instant access.

Under current rules, members can withdraw up to 75% of their funds. The full amount can only be withdrawn if the individual has been unemployed for at least one year.

The new feature will also allow members to check their EPF passbook balance. The EPFO ​​processes over 50 million withdrawal claims annually. The UPI-based system will speed up the process and provide significant relief to employees.

A minimum of 25% of the amount will be frozen. Of course, account holders will be allowed to withdraw funds within a set limit. As the source explained, under the new Labor Code rules, a minimum 25 percent of the EPF account balance will be frozen, and account holders will be able to withdraw any remaining funds as needed through UPI. Through the new mobile app, account holders will also be able to access other services, including their passbook balance.

Even after the launch of the mobile app, you will be able to avail the benefits of the existing services. Currently, the UAN number or the Umang portal are the means to access these services. Even after the mobile app is launched, both existing services will remain available on the online platform. Currently, UPF account holders must submit an application to withdraw funds from their account, which is time-consuming.

Related Stories

Latest
Follow on Google