EPFO to enable EPF withdrawals via UPI through new app from April
EPFO is set to launch a new mobile application in April to allow members to withdraw their provident fund directly through UPI. The move aims to simplify withdrawals, reduce paperwork, and improve service delivery for over eight crore subscribers
New Delhi: Subscribers of the Employees’ Provident Fund Organisation (EPFO) will soon be able to withdraw their Employees’ Provident Fund (EPF) directly into their bank accounts through the UPI payment gateway using a newly designed mobile application, expected to be launched in April, a top source said.
The Labour Ministry is working on a project under which a certain proportion of EPF savings will be frozen, while a major portion will be made available for withdrawal through bank accounts using the Unified Payments Interface (UPI), the source told PTI.
The source said EPFO will roll out a dedicated mobile application through which members will be able to withdraw EPF funds via UPI and also access other services, including passbook balance and account details.
Currently, members use the Universal Account Number (UAN) portal or the UMANG app to access EPF services. These platforms will continue, while the new app is expected to further improve service accessibility and delivery.
Subscribers will be able to view the eligible EPF balance available for transfer to their seeded bank accounts on the mobile application and use their linked UPI PIN to complete transactions, ensuring secure fund transfers.
The source said EPFO is presently conducting trials using 100 dummy accounts to improve system efficiency and eliminate technical glitches.
The Labour Ministry is likely to launch the new app with a major public outreach programme in April.
At present, EPFO members must apply for withdrawal claims to access their funds, a process that can be time-consuming. Under the auto-settlement mode, claims are settled electronically without manual intervention within three days of filing. The limit under this mode has been raised to Rs 5 lakh from Rs 1 lakh.
This enables members to access funds quickly for purposes such as illness, education, marriage and housing.
EPFO, which has about eight crore members, first introduced online auto-settlement of advance claims during the COVID-19 pandemic to provide rapid financial assistance.
Despite this, members still need to file claims to withdraw their savings. The new system aims to eliminate this requirement and reduce the administrative burden, as over five crore claims are settled annually, mostly for EPF withdrawals.
The source said EPFO cannot allow direct withdrawals from EPF accounts as it does not hold a banking licence, but added that the government aims to upgrade EPFO services to be on par with banks.
