PF funds can now be withdrawn directly through UPI! This amazing service will launch soon, ending weeks of waiting
The EPFO is preparing to make the PF withdrawal process completely digital and superfast for its subscribers. Under this initiative, members will now have the option to transfer (withdraw) PF funds directly to their UPI IDs. Currently, it takes 3 to 7 days or more for PF funds to be transferred to bank accounts after a claim. With the introduction of UPI, funds will be transferred immediately in real-time once a claim is approved.
Labor Minister Mansukh Mandaviya said that EPFO members will soon be able to withdraw their Employees Provident Fund through UPI and transfer it directly to their bank accounts through the UPI payment gateway.
Testing for this has been completed. Speaking to reporters, the minister said that the Employees Provident Fund Organization (EPFO) is taking several steps to improve the quality of service delivery.
Mandaviya said on Tuesday that we have completed testing of the facility under which members will be able to withdraw EPF (Employees Provident Fund) using the UPI payment gateway. The withdrawn amount will be transferred directly to the member's bank account.
EPF money can be withdrawn through UPI
The Ministry of Labor is working on a project where a certain portion of EPF will be frozen, and a larger portion will be available for withdrawal through a bank account using the Unified Payments Interface (UPI).
Members will be able to view the eligible EPF balance available for transfer in their linked bank accounts. To ensure secure transfer of funds to their bank accounts, they will be allowed to use their linked UPI PIN to complete the transaction.
Once the funds are transferred to their bank accounts, members can use them as they wish, such as making electronic payments or withdrawing money from bank ATMs using a debit card.
Amount increased 5 times
The Employees' Provident Fund Organization (EPFO) is working to resolve software-related issues to smoothly implement this system, which will benefit over 70 million members.
Currently, EPFO members must submit a claim application to withdraw their EPF funds, which is time-consuming. Under the auto-settlement mode, claims are settled electronically within three days of submitting the claim application, without any human intervention.
The limit for this auto-settlement mode has been increased from the current ₹1 lakh to ₹5 lakh. This allows a large number of EPFO members to withdraw their EPF funds within three days for purposes such as illness, education, marriage, and house construction.
New initiative through WhatsApp
The Minister informed that EPFO has taken the initiative to use WhatsApp to expand its reach and enhance the services provided to its members. EPFO plans to use the WhatsApp platform to expand its reach and enhance the services provided to its members.
The main reason for using the WhatsApp channel for communication is that it is used by most mobile users. Under this facility, members can start a conversation with EPFO by simply typing 'Hello' on the EPFO's registered WhatsApp number.
This number will be marked with a green tick mark for security and trust. They can also opt to receive messages from the EPFO on their mobile number registered with the EPFO.
All communications will be in the local/regional language, making it easier for members to connect with the EPFO in their own language. Members will have access to this facility 24/7, and automated systems will handle frequently asked questions around the clock.