EPFO plans UPI-based EPF withdrawals in big service reform

New Delhi: In a major step to modernise provident fund access and bring EPFO services closer to banking standards, the labour ministry is set to roll out a new mobile application that will allow subscribers to withdraw eligible EPF balances directly into their bank accounts through the UPI payment gateway from April.

The reform aims to cut claim processing time, reduce administrative burden on the EPFO, and give over 8 crore members faster, more seamless access to their retirement savings.

The labour ministry is working on a project where a certain proportion of the EPF will be frozen, and a large chunk will be available for withdrawal through their bank account using Unified Payment Interface (UPI), said a top source.

The Employees’ Provident Fund Organisation will roll out a new mobile phone application through which the member would be able to withdraw their EPF money using UPI gateway as well as avail other services like passbook balance. Currently, the member uses either the Universal Account Number (UAN) portal or the UMANG app to access their EPF accounts and avail of their services. These services will remain available on both platforms, while the new dedicated app will further improve the accessibility and delivery of services for EPFO subscribers, the source informed.

Subscribers will be able to view the eligible EPF balance available for transfer to their seeded bank accounts in the mobile application. They will be allowed to use their linked UPI PIN to complete the transaction, ensuring a secure transfer of funds to their bank accounts.

The source stated that the EPFO is presently conducting trials using 100 dummy accounts to improve the efficacy of the service and remove any technical glitches that the service may have. The labour ministry is likely to roll out the new app with a big fanfare in April this year. Presently, the members of EPFO have to apply for withdrawal claims to access their EPF money, which is time-consuming. Under the auto-settlement mode, the withdrawal claims are settled electronically without manual intervention within three days of filing the application form. The limit of this auto-settlement mode has already been raised to Rs 5 lakh from the existing Rs 1 lakh.