New Delhi: In a groundbreaking move set to transform financial accessibility for millions of Indian workers, the Employees’ Provident Fund Organisation (EPFO) is gearing up to launch a new system allowing Provident Fund (PF) withdrawals through Unified Payments Interface (UPI) and ATMs. This innovative approach, slated for implementation by the end of May or early June 2025, aims to streamline the withdrawal process and provide unprecedented convenience to EPFO members.
Labour and Employment Secretary Sumita Dawra announced that PF members will soon be able to view their account balances directly on UPI platforms and make instant withdrawals of up to Rs 1 lakh through an automated system. This digital leap will enable members to choose their preferred bank accounts for transfers, significantly reducing transaction times and enhancing financial flexibility.
The EPFO has undergone extensive digital transformation, integrating over 120 databases to streamline claim processing. As a result, the claim processing time has been dramatically reduced to just three days, with 95% of claims now automated. The organization continues to enhance its IT infrastructure to ensure faster and more efficient financial transactions.
In addition to the UPI and ATM withdrawal options, the EPFO has expanded the reasons for which members can access their funds. Beyond medical emergencies, employees will now be able to withdraw funds for housing, education, and marriage, providing greater financial support for various life events.
The reforms extend to pensioners as well. Since December 2024, approximately 78 lakh pensioners have benefited from the ability to withdraw funds from any bank branch, eliminating previous geographical restrictions.
With over 7.5 crore active members and 10-12 lakh new members joining monthly, the EPFO’s digital initiative aligns with Prime Minister Narendra Modi’s vision of “ease of living” for employees and employers. This transformative step in India’s digital financial landscape promises to bring unprecedented convenience and efficiency to millions of working professionals across the nation.
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