EPFO may soon let users withdraw PF money directly through UPI

The Employees’ Provident Fund Organization in India might soon introduce a major update for EPF users. The regulatory authority is bringing a faster and more easier EPF withdrawals. It is preparing to roll out a new UPI-based withdrawal system. It will allow members to transfer their EPF funds directly into their bank accounts via UPI authentication. Also Read: EPFO KYC Update: PF withdrawal blocked without KYC update, EPFO online process explained

The PF withdrawal by UPI was announced by Mansukh Mandaviya, Minister of Labour and Employment. He mentioned that the testing of the new facility has already been completed. The labor ministry and EPFO are currently working together to improve the service delivery system before the wider rollout begins. Also Read: UAN activation now only on UMANG app: Here’s how to do it

How EPF members will withdraw money via UPI

Currently, EPF withdrawals require users to submit claims through the EPF portal. After this process, the request goes through processing and approval stages. While the auto-settlement has reduced waiting times but the process is still lengthy for users needing urgent access to their funds. Also Read: EPFO Member Portal login guide: How to check PF balance and download passbook

The upcoming EPF withdrawal feature is planned with an aim to simplify this very significant need to accessing funds immediately.

As soon as it is introduced, EPFO members may be able to directly transfer their eligible EPF balance into their linked bank accounts. They can use their UPI PIN for authentication.

The money will then be credited directly to the bank account linked with the EPF account.

How the new EPF withdrawal system could work

The new system is expected to work in a few simple steps: Follow them

Step 1: You first need to be able to view the eligible EPF balance available for withdrawal.

Step 2: Once you have seen the mount, you may then authenticate the transaction. Use your linked UPI PIN.

Step 3: Once the system has verified, the amount would be transferred directly to your bank’s account.

Step 4: Once the transfer is complete, you could use the funds normally.

EPFO is working to reduce delays and software issues

According to reports, labor ministry has been working on a system where a certain portion of EPF savings can be protected. However, a wider and larger accessible portion will become easier to withdraw digitally via UPI-linked bank accounts.

Nevertheless, officials are still resolving the backend software issues before making the feature live.

Current EPF withdrawal process still continues

EPFO members will continue to use the existing withdrawal claim process until the UPI-based system becomes available.

Currently, members have an auto-settlement mode under which certain withdrawal claims are processed. This process takes place electronically without manual intervention within three days.

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Recently, the Indian government has increased the auto settlement limit from1 lakh to 5 LAKH. This helps users access larger amounts quickly for marriage, education, medical, and housing needs.