PF WITHDRAWAL JUST GOT FASTER: EPFO's UPI-Based System to Reduce Waiting Time
New Delhi (The Uttam Hindu): The Employees Provident Fund Organization (EPFO) is going to make a big change by the end of May or early June 2025. With this new change, EPFO members will be able to withdraw their provident fund (PF) instantly through UPI and ATM. With this update, employees will no longer have to go through long and time-consuming processes to access their PF savings. The initiative is being implemented in collaboration with the Ministry of Labor and Employment and has received approval from the National Payments Corporation of India (NPCI). The move is expected to provide better facilities to lakhs of EPFO members across the country. Sumita Dawra, Secretary, Ministry of Labor and Employment, said that employees will be able to withdraw up to Rs 1 lakh instantly.
He informed that members will also be able to check their PF balance directly on the UPI platform and transfer funds to their preferred bank accounts without any delay. This will make it easier for employees to access their money in times of need. Currently, withdrawing PF funds requires submitting claims online and waiting for approval, which can take several days or even weeks. However, with UPI integration, withdrawals will become instant and hassle-free. Employees will not only be able to withdraw funds quickly but will also be able to check their balance and make transactions instantly. Apart from this, EPFO is also expanding the reasons for withdrawing PF savings for its members.
Apart from medical emergencies, employees will now be able to withdraw funds for housing, education and marriage. Dawra said, “EPFO has made major improvements in its digital infrastructure by integrating over 120 databases. These efforts have reduced the claim processing time to just three days, with 95 per cent of claims now being processed automatically. Further upgrades are underway to make the system more efficient.” Pensioners have also benefited from EPFO's digital initiatives. Around 78 lakh pensioners have been able to access their funds from any bank branch without any restrictions from December 2024. Earlier, withdrawals were allowed only from specific bank branches.
