EPFO Update – The upcoming financial year is going to be a boon for PF employees. The central government is going to make cash withdrawal facilities easier for PF employees. Provident Fund amounts can now be withdrawn through UPI. This facility is going to start on April 1, 2026. There is a lot of enthusiasm among PF employees regarding this.
Currently, to withdraw PF money, a claim has to be filed, which takes 10 to 15 days to be confirmed. Sometimes, the claim even gets cancelled. But now, you will be able to withdraw your funds directly through UPI. In this modern era, PF account holders are being connected through digital methods, which will provide significant benefits. PF will be transferred to your current account in an easy way.
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How will PF be transferred to your current account?
If you are a PF employee and want to take advantage of this facility, you will have to keep some important things in mind. You will be able to see the money available in your EPF account, which can be easily withdrawn. Along with this, you can also transfer this money to your account using your linked UPI PIN.
This method will be very secure for PF employees. Once the money goes into your bank account, the employee can use it as they wish. Employees can also make online payments with it. Most importantly, they can withdraw it through ATMs using their debit card. This step by EPFO will be considered historic and revolutionary. They will be able to easily use their funds in emergencies.
How is PF withdrawn currently?
Currently, certain procedures must be followed to withdraw PF. EPF members have to file a claim application to withdraw their EPF money. This wastes a lot of time. EPFO already has an auto-settlement method in place.
In this method, the money is settled electronically within three days of the claim application. There is no manual intervention involved. Now, the limit for auto-settlement mode has been increased from ₹1 lakh to ₹1 lakh. The auto-settlement facility is beneficial for purposes such as education, medical expenses, marriage, and building a house.
Learn about the objectives of the new system.m
It’s worth noting that the new system is being developed with several objectives in mind. Once implemented, it will save employees time when withdrawing their provident fund (PF) money. It will also significantly reduce the workload on the EPFO (Employees’ Provident Fund Organisation). According to a senior official, the EPFO cannot directly allow withdrawals from EPF accounts because it does not have a banking license.