The Employees’ Provident Fund Organisation (EPFO) is likely to introduce a major change that will allow its members to withdraw their provident fund (PF) instantly through UPI and ATMs by the end of May or early June 2025.
With this update, employees will no longer have to go through long and time-consuming procedures to access their PF savings.
The initiative is being implemented with the support of the Ministry of Labour and Employment and has received approval from the National Payments Corporation of India (NPCI).
This move is expected to bring greater convenience to millions of EPFO members across the country.
Sumita Dawra, Secretary at the Ministry of Labour and Employment, said employees will be able to withdraw up to Rs 1 lakh instantly.
She mentioned that members will also be able to check their PF balance directly on UPI platforms and transfer funds to their preferred bank accounts without delays.
This will make it easier for employees to access their money in times of need.
Currently, withdrawing PF funds involves submitting online claims and waiting for approvals, which can take several days or even weeks.
However, with the upcoming UPI integration, withdrawals will become instant and hassle-free.
Employees will not only be able to withdraw funds quickly but also check their balances and make transactions instantly.
EPFO is also expanding the reasons for which members can withdraw their PF savings. Apart from medical emergencies, employees will now be able to withdraw funds for housing, education, and marriage.
This step aims to give more financial flexibility to employees. “EPFO has made significant improvements in its digital infrastructure by integrating over 120 databases,” Dawra said.
“These efforts have reduced claim processing time to just three days, with 95 per cent of claims now being processed automatically. Further upgrades are also in progress to make the system even more efficient,” she stated.
Pensioners have also benefited from EPFO’s digital initiatives. Since December 2024, around 78 lakh pensioners have been able to access their funds from any bank branch without restrictions.
Earlier, withdrawals were allowed only from specific bank branches.
(IANS)
