NEW DELHI, Mar 25: In a major development for India’s workforce, the Employees’ Provident Fund Organisation (EPFO) is set to introduce a revolutionary new system for Provident Fund (PF) withdrawals through Unified Payments Interface (UPI).
The Labour and Employment Ministry has approved the recommendation of the National Payments Corporation of India (NPCI), an umbrella organisation that operates retail payments and settlement systems in India.
According to the Labour and Employment secretary Sumita Dawra, PF members will be able to withdraw funds through UPI and ATM by the end of May or June this year. Ms Dawra said by May-end or June, members would experience a transformative change in accessing their provident funds. They would be able to view their PF account balance directly on UPI, instantly withdraw up to Rs1 lakh through an automated system, and choose their preferred bank account for transfers.
The secretary said the organisation has significantly expanded withdrawal options to provide more financial flexibility. Members can now withdraw funds for housing, education, and marriage, in addition to the existing sickness provisions.
“The EPFO has made significant strides in digitalizing its processes, integrating over 120 databases to streamline the withdrawal process. Claim processing time has been dramatically reduced to just 3 days, with 95% of claims now automated and plans to further simplify the process underway,” said the Secretary.
Dawra said pensioners have also benefited from recent reforms. Since December, 78 lakh pensioners have enjoyed increased flexibility, with the ability to withdraw funds from any bank branch. The geographical limitations for pension withdrawals, which were limited to a few selected bank branches, have been completely removed.
Dawra said working on these reforms was not easy. The EPFO’s massive scale was evident in its membership numbers. With over 7.5 crore active members, the organisation is continuously growing, adding 10-12 lakh new members monthly across its 147 regional offices covering the entire nation.
The soon to be launched of UPI and ATM-based PF withdrawals will mark a significant milestone in India’s digital financial transformation, promising unprecedented ease and speed for millions of working professionals.
(Manas Dasgupta)
