EPFO: The EPFO has made a significant announcement regarding PF withdrawals. Employees will no longer face long waiting times to access their provident fund. The organization states that with the implementation of the new system, most PF claims will be resolved within 24 to 48 hours, and in many instances, on the same day. Furthermore, the EPFO will soon offer the option to transfer PF funds directly to bank accounts via UPI.
Now PF claims will be resolved within 24-48 hours
The Employees’ Provident Fund Organization (EPFO) has taken a significant step to expedite the PF withdrawal process. During the Global Industrial Relations Summit in New Delhi, EPFO Central Provident Fund Commissioner (CPFC) Ramesh Krishnamurthy announced that the organization aims to settle new PF claims for members on the same day or within a maximum of 24 to 48 hours. He mentioned that the EPFO has cleared nearly all pending claims, and now, with the new auto-settlement system, about 90 percent of claims are being processed without delays.
Previously, it took 7 to 10 working days.
In the past, after submitting a PF withdrawal claim online with the EPFO, even after completing KYC, the claim usually took 7 to 10 working days to process. However, with the new system in effect, employees will no longer have to wait long for their funds when they need them. This change will make it much easier and quicker to withdraw PF for medical emergencies, education, home purchases, or other essential expenses.
PF payment facility through UPI will be launched soon
The EPFO has also revealed that within the next month, PF claims will be paid directly to UPI-linked bank accounts via the BHIM app. This means that once a claim is approved, the amount will be credited directly to the member’s UPI-linked bank account. This will enhance the banking process and minimize payment delays. This initiative is also seen as a significant move towards encouraging digital payments.
Will the interest rate on EPF increase?
During the program, when asked about increasing the current 8.25 percent interest rate on EPF, Ramesh Krishnamurthy said that it would be premature to comment on this matter. He added that as of July 3, the EPFO had simultaneously deposited approximately Rs 1.44 lakh crore in interest at the rate of 8.25 percent into over 340 million member accounts, which is a significant achievement for the organization.
EPFO services will become easier in future
The EPFO says that in the future, the organization’s focus will no longer be limited to claim settlement. Compliance processes for employers will be simplified, and more digital and faster services will be provided to members. These reforms aim to make the EPFO a more reliable and modern social security institution for both employees and employers. With the new system in place, millions of employees are expected to be relieved of the previously lengthy process and wait times for PF withdrawals.