PF withdrawals through UPI soon as EPFO tests direct bank transfer system
New Delhi, May 19
The Employees' Provident Fund Organisation has completed testing for a new facility that will allow subscribers to withdraw their provident fund savings directly into their bank accounts through the Unified Payments Interface, Union Labour Minister Mansukh Mandaviya said on Tuesday.
Addressing reporters, Mandaviya said the move is part of a broader push by EPFO to improve service delivery and simplify access to provident fund savings for over seven crore members.
Under the proposed system, EPFO subscribers will be able to view the portion of their eligible EPF balance available for transfer and withdraw the amount instantly into their bank accounts linked with UPI. Members will authenticate transactions using their UPI PIN, ensuring secure transfer of funds.
The labour ministry has been working on a mechanism under which a certain portion of EPF savings will remain frozen, while a substantial amount will be made available for direct withdrawal through UPI-enabled bank accounts. Once credited, subscribers can use the funds for digital payments or withdraw cash through ATMs using debit cards.
At present, EPFO members are required to file withdrawal claims to access their provident fund money, a process that often takes time. The organisation has already introduced an auto-settlement mode under which claims are processed electronically without manual intervention within three days. The withdrawal limit under this facility has been increased from Rs 1 lakh to Rs 5 lakh, enabling faster access to funds for purposes such as illness, education, marriage and housing.
Mandaviya said EPFO has also planned to roll out member services through WhatsApp within the next month to improve outreach and grievance redressal. Under the proposed facility, subscribers will be able to initiate conversations with EPFO by sending a "Hello" message to the organisation's verified WhatsApp number.
The platform will allow members to access services such as checking PF balances, viewing the last five transactions and tracking claim status. Communication will be available in regional languages to improve accessibility and user comfort.
The WhatsApp-based initiative will also target beneficiaries under the PMVBRY scheme who face issues such as incomplete Aadhaar authentication through UIDAI's Face Authentication Technology or non-enablement of direct benefit transfer in Aadhaar-linked bank accounts. Such users will receive guided assistance through the platform itself.
The minister further said EPFO has undertaken a mission-mode drive to reduce litigation and expedite the disposal of pending legal cases. Cases before consumer courts were identified and taken up under the "Nidhi Aapke Nikat" programme for faster resolution.
— IANS
Reader Comments
Finally, some modernization! The current claim process is too slow—waiting days or weeks for urgent funds is not acceptable. But I hope the security is top-notch; UPI frauds are increasing, and we don't want any loopholes. Also, what about those without smartphones? Hope they keep traditional options too.
Good step forward. I work in a multinational in Bangalore, and this will help a lot of young professionals like me who need quick access to savings for down payments or sudden expenses. The auto-settlement limit increase to Rs 5 lakh is also welcome. Let's hope the rollout is smooth.
A much-needed improvement! As a working mother, I often need funds for my child's education or medical emergencies. The WhatsApp service is a great idea for tracking claims without visiting offices. But I wish they also focus on reducing the interest rate volatility; PF should remain a stable savings tool for retirement.
This is brilliant! UPI for PF—best of both worlds. Instant access without paperwork. But I'm curious: will there be a cap on how much we can withdraw via UPI per month? Also, hope the frozen portion isn't too high, because many people rely on PF for major life events. Still, kudos to EPFO for innovation! 🚀
Good news for India's workforce. I've seen many colleagues struggle with the claims process—this will save time. But I hope the government also educates users about the risks of withdrawing too much; PF is meant for retirement after all. The
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