EPFO 3.0: The Employees’ Provident Fund Organization (EPFO) has some exciting news for salaried individuals. In the past, withdrawing PF funds involved a lengthy process and weeks of waiting. However, reports indicate that a groundbreaking change is set to take place in September with EPFO 3.0. You will soon be able to withdraw your PF funds instantly using your BHIM UPI, similar to any other digital payment.

What is the new UPI PF withdrawal system?

To expedite claim settlements, EPFO has introduced an ‘Auto Settlement System.’ This means you won’t have to wait 15 to 20 days for your claim anymore. With the new regulations, over 90% of claims will be settled on the same day or within a maximum of 48 hours. The integration of BHIM/UPI is being made available on EPFO’s new mobile app and portal, enabling employees to withdraw funds directly to their accounts using their UPI ID.

Why was this facility delayed?

Account holders have been eagerly anticipating the UPI withdrawal service from EPFO. Initially, it was expected to launch in July, but new dates were set for August. Unfortunately, ongoing technical glitches and server issues on the EPFO portal led to a last-minute postponement.

Now, recent reports suggest that EPFO has largely addressed these technical challenges. As a result, it is anticipated that this feature will officially launch in September, bringing relief to millions of account holders.

To start with, it will be available through the BHIM app

It’s important to note that the new system for withdrawing money from PF accounts via UPI will first be implemented through the Government of India’s BHIM App. To ensure transaction security, data privacy, and the reliability of the government payment gateway, EPFO has opted to integrate only BHIM UPI in this initial phase. The inclusion of other UPI apps will be considered only after a successful rollout.

Know these rules for withdrawing money

1. 75% – 25% formula: Under the new rule, you can withdraw a maximum of 75% of your total deposit for immediate needs (such as medical or education). It has been made mandatory to leave a 25% balance in the account to secure your old age.

2. Bank and UPI must match: Your UPI ID must be linked to the same bank account as registered with your EPFO ​​account or UAN in KYC. If the name or bank is different, the transaction will be immediately rejected to prevent fraud.

3. No company approval: You do not need any approval from your company or HR for this online process; it will be completely automatic and paperless.