PF Withdrawal via UPI: Across the nation, millions of employees have their funds stored in PF accounts. This PF balance serves as a crucial financial resource during significant life events such as job transitions, unexpected expenses, health issues, education, or weddings. Unfortunately, the process of withdrawing PF has often been tedious, requiring forms, verification, and several days of waiting. However, changes are on the horizon to improve this system.
The Employees’ Provident Fund Organization is set to roll out a feature that will simplify PF fund withdrawals to the ease of sending money through UPI. All you need to do is open the mobile app, make a request, and the funds will be sent straight to your bank account. This update could be a major relief for those holding PF accounts. Find out which UPI applications will facilitate these withdrawals.
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When will this service be available?
The EPFO is gearing up to introduce a UPI-based PF withdrawal system in the next two to three months. They are developing the necessary technical infrastructure in partnership with the National Payments Corporation of India. With this new method, PF account holders will be able to request withdrawals through the UPI app, while the EPFO system will handle the verification in the background.Once the Aadhaar, bank, and PF account details are validated, the process will move forward. Officials are optimistic that this system will greatly shorten the time it takes to process claims and enhance tracking for users.
Funds will be deposited directly into the bank account.
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At present, an online advance claim of less than Rs 5 lakh takes a minimum of three working days to process, even in automatic mode. Larger claims take even longer due to manual handling. The new UPI system is expected to nearly eliminate this waiting period.
Once a member files a claim under an eligible category, such as illness, medical treatment, child education, or marriage, the EPFO system will promptly verify it.
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If everything checks out, the funds will be transferred directly via the State Bank of India to the bank account linked to UPI. This means that the money can show up in the account almost instantly after the claim is approved.
From which apps can you withdraw money?
Currently, many individuals are curious about which UPI apps will facilitate PF withdrawals. Initially, PF withdrawals will be accessible only through the BHIM app. Officials have stated that full withdrawals will not be allowed in the first phase. A limit will be established, with a final decision still pending. This limit will be set in line with the UPI regulations of the Reserve Bank of India.
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The aim is to keep the system secure and prevent any misuse. If everything goes smoothly in the initial phase, this feature could eventually be extended to other prominent UPI platforms like Paytm, PhonePe, and Google Pay. This suggests that in the future, withdrawing PF could become as simple as making regular digital payments.