EPFO: New feature, millions of members nationwide will get benefit

EPFO: Employees will soon have the option to withdraw their EPF (Employees Provident Fund) funds using UPI and ATMs. As reported by IANS, the Employees Provident Fund Organization (EPFO) is expected to roll out this feature by the end of May or early June 2025. If implemented, this will eliminate the lengthy procedures currently required to access PF savings. This initiative is backed by the Ministry of Labor and Employment and has received the green light from the National Payments Corporation of India (NPCI).

Will benefit millions of EPFO members

This change will benefit millions of EPFO members nationwide. Sumita Dawra, Secretary of the Ministry of Labor and Employment, mentioned that employees will be able to withdraw up to Rs 1 lakh instantly. Additionally, EPFO members will have the ability to check their PF balance directly on the UPI platform and transfer funds to their preferred bank accounts without any delays. This will significantly ease access to funds during urgent situations.

Withdrawing PF money

At present, withdrawing PF money involves submitting an online claim and waiting for approval, which can take days or even weeks. The integration of UPI will streamline this process, making withdrawals quick and straightforward. Furthermore, EPFO is expanding the circumstances under which members can withdraw their PF savings. Currently, withdrawals are allowed for medical emergencies, purchasing or building a house, repaying home loans, funding children’s education after the 10th grade, marriage, unemployment, buying equipment for physically challenged members, property damage from natural disasters, investing in the Senior Pension Insurance Scheme, and during the year leading up to retirement, though not fully.

Dawra also noted that EPFO has significantly upgraded its digital infrastructure by integrating over 120 databases, which has cut down the claim processing time to just three days. Now 95 percent of the claims are being processed automatically. Further upgrades are also in progress to make the system more efficient.