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A top government official said Provident Fund members will instantly be able to withdraw up to Rs 1 lakh and choose their preferred bank account for the transfers, once the new system comes into place
Provident Fund members will soon be able to withdraw funds through UPI and ATM. (Image: News18/File)
In a significant development, Provident Fund members will soon be able to withdraw funds through UPI and ATM. A top government official said the Employees’ Provident Fund Organisation is set to introduce this revolutionary withdrawal system, giving financial flexibility to crores of people, by the end of May or June.
The Employees’ Provident Fund Organisation (EPFO) will enable withdrawals through the unified payments interface (UPI). The move comes after the labour and employment ministry gave its nod to the recommendation of the National Payments Corporation of India (NPCI), which is an umbrella organisation operating retail payments and settlement systems in India.
Sumita Dawra, secretary of the ministry of labour and employment, exclusively told news agency ANI that Provident Fund (PF) members will soon be able to withdraw funds through UPI and ATM by the end of May or June. She said they will instantly be able to withdraw up to Rs 1 lakh and choose their preferred bank account for the transfers, once the new system comes into place.
Dawra said there will be a transformative change in PF accessibility, while members will also be able to check their PF account balance on UPI. She said expanding the withdrawal options will not only provide financial convenience, but will help members quickly 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 3 days, with 95% of claims now automated and plans to further simplify the process underway,” she told ANI.
She further said the recent reforms have also benefited pensioners. Since December 2024, 78 lakh pensioners have enjoyed increased flexibility with the ability to withdraw funds from any bank branch. Geographical limitations for pension withdrawals, which were only for selected bank branches, no longer exist.
The EPFO faced a daunting task in introducing these reforms, Dawra said. The organisation has more than 7.5 crore active members and adds 10 to 12 lakh new members every month across 147 regional offices across the country, she said.
She also said the EPFO reforms align with Prime Minister Narendra Modi’s vision of ‘ease of living’ for employees and employers.
