In case you have an Workers’ Provident Fund (EPF) account, withdrawing cash might quickly turn into a lot quicker and easier — probably as simple as making a UPI fee.
The Workers’ Provident Fund Organisation (EPFO) is getting ready to launch a new cellular software in April that may allow subscribers to withdraw eligible EPF funds straight into their financial institution accounts using the UPI fee gateway, authorities sources informed PTI.
The transfer is aimed toward making EPF entry extra handy for the organisation’s practically 8 crore members, lots of whom at the moment face a multi-step declare course of to withdraw their very own financial savings.
“The labour ministry is engaged on a mission the place a sure proportion of the EPF will probably be frozen, and a big chunk will probably be obtainable for withdrawal through their checking account using Unified Cost Interface (UPI),” the supply informed PTI.
The supply additional mentioned that the Workers’ Provident Fund Organisation will roll out a new cell phone software through which the member would be capable of withdraw their EPF cash using UPI gateway in addition to avail different companies like passbook stability.
What might change for EPF subscribers
At this time, EPF withdrawals require members to:
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file a declare on-line through the UAN portal or UMANG app -
await processing and approval -
obtain funds of their checking account after settlement
With the proposed system, subscribers may be capable of:
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view their withdrawable EPF stability within the new cellular app -
switch eligible funds on to their linked checking account -
authenticate the transaction using a UPI PIN -
This might considerably scale back the effort and time required to entry EPF financial savings.
Trials already underway
The EPFO is at the moment testing the system using dummy accounts to determine and repair technical points earlier than the official rollout. The new app is predicted to enhance — not change — current platforms just like the UAN portal and UMANG app.
Members will nonetheless be capable of examine their EPF passbook stability and entry different companies through the new software.
Quicker entry to emergency funds
Lately, EPFO has already been working to hurry up withdrawals. Through the pandemic, it launched auto-settlement of advance claims, which permits eligible withdrawals to be processed electronically inside three days with out guide intervention.
The restrict for auto-settlement has since been elevated to ₹5 lakh, enabling faster entry to funds for:
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medical emergencies -
schooling -
marriage bills -
housing wants
Nonetheless, members nonetheless have to submit withdrawal claims — a course of the new system goals to simplify additional.
Why EPFO is making this alteration
Every year, EPFO processes over 5 crore claims, most of them associated to withdrawals. Simplifying the method might scale back administrative workload whereas enhancing the expertise for subscribers.
Officers informed PTI the organisation can’t allow direct withdrawals from EPF accounts like a financial institution as a result of it doesn’t maintain a banking licence. As a substitute, the new system will switch funds securely to members’ financial institution accounts through UPI.
The broader purpose is to make EPF companies as accessible and environment friendly as trendy banking platforms, whereas sustaining safety and compliance safeguards.
wITH INPUTS FROM pti
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