PF withdrawals through UPI, ATM to be enabled from May end
In a ground-breaking 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.
Sumita Dawra, Secretary of the Ministry of Labour and Employment, revealed that PF members will soon be able to withdraw funds through UPI and ATM by the end of May or June this year. They will be able to view their PF account balance directly on UPI, instantly withdraw up to Rs 1 lakh through an automated system, and choose their preferred bank account for transfers.
The secretary added that 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 digitalising its processes, integrating over 120 databases to streamline the withdrawal process. Claim processing time has been dramatically reduced to just three days, with 95 per cent 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 added that working on these reforms was not easy. The EPFO's massive scale is 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.
Secretary Dawra emphasised that these reforms align with Prime Minister Narendra Modi's vision of "ease of living" for employees and employers. The initiative aims to simplify social security processes, modernise IT infrastructure and provide greater financial convenience to India's workforce.
