EPFO: Employees and account holders of the Employees’ Provident Fund Organization (EPFO) can look forward to positive developments regarding the withdrawal of funds from their provident fund accounts. A new software system is set to be introduced, simplifying the withdrawal process. Following this enhancement, EPFO subscribers will have the ability to withdraw funds directly from their PF accounts using UPI and ATMs.
Actively working to streamline EPF withdrawals
The central government is actively working to streamline EPF withdrawals. This initiative involves integrating EPF with UPI, allowing subscribers to access their funds through a digital wallet. A blueprint for this scheme has already been created, and discussions are underway with the National Payments Corporation of India (NPCI) to facilitate its implementation. If all goes as planned, this service could be operational on the UPI platform within the next two to three months.
Reports suggest that once UPI integration is complete, EPFO members will receive their claimed amounts directly in their digital wallets, significantly expediting the withdrawal process. The implementation of this plan is anticipated by May or June 2025. It is important to note that the employer’s contribution will be based on the employee’s salary, ensuring that there is no additional financial burden on employers. Once this facility is launched, employees will be able to easily claim their amounts through their digital wallets. Currently, the EPF withdrawal process takes approximately seven days, but with UPI integration, it is expected to be completed within a few hours.
This change will likely reduce the likelihood of claim rejections and enhance transaction transparency. Additionally, as part of the EPFO 3.0 initiative, members will also have access to an ATM withdrawal option. The ATM card will function similarly to a debit card, requiring users to link their Universal Account Number (UAN), verify an OTP, and then proceed to withdraw cash.