EPFO To Enable Instant PF Withdrawals Via UPI, Atms By June

(MENAFN- Kashmir Observer) Srinagar- In a game-changing move for India's workforce, the Employees' Provident Fund Organisation (EPFO) is set to introduce instant Provident Fund (PF) withdrawals through Unified Payments Interface (UPI) and ATMs. The initiative, expected to roll out by May-end or June, promises seamless and faster access to retirement savings, empowering millions of salaried employees across the country, wire service ANI reported on Tuesday.

The Labour and Employment Ministry has approved the proposal, which was recommended by the National Payments Corporation of India (NPCI), the body overseeing India's digital payments ecosystem. This move aligns with the government's broader vision of“ease of living” and financial inclusion through digital transformation.

PF Withdrawals in Seconds: How It Works

Sumita Dawra, Secretary, Ministry of Labour and Employment, revealed that once implemented, members will be able to view their PF balance on UPI platforms, withdraw up to ₹1 lakh instantly, and even select their preferred bank account for direct transfers. The system will work seamlessly with ATMs, offering flexibility in fund withdrawals like never before, ANI quoted her as saying.

Additionally, the reforms will expand withdrawal options, enabling members to access funds for housing, education, marriage, and medical emergencies, apart from the existing provisions for illness.

Faster Claims Processing & Digital Integration

The EPFO has been rapidly digitizing its services, integrating over 120 databases to streamline the withdrawal process. Dawra highlighted that 95% of claims are now automated, significantly reducing the processing time to just three days, compared to the previous weeks-long delays. Further enhancements are in the pipeline to simplify the claims process even more.

Read Also EPFO Retains 8.25% Interest Rate On Employees' Provident Fund Deposits For 2024-25 'EPFO, ESIC Subscribers May Soon Use Claim Amounts Via E-Wallets' Pensioners to Benefit from Expanded Access

Pensioners, too, are set to benefit from recent policy changes. Since December, 78 lakh pensioners have gained the ability to withdraw funds from any bank branch nationwide, eliminating previous geographical restrictions that required withdrawals from specific banks.

A Boon for India's Expanding Workforce

With 7.5 crore active members and an addition of 10-12 lakh new members every month, the EPFO is one of the largest social security organizations in the world. It operates through 147 regional offices, covering the entire nation. Given its massive scale, implementing such sweeping digital reforms was no easy task, Dawra admitted.

However, she stressed that these measures align with Prime Minister Narendra Modi's vision of modernizing India's financial and social security systems. The goal is to enhance convenience for employees and employers alike, reducing paperwork, eliminating delays, and making financial transactions more accessible.

A Landmark Moment

The launch of UPI and ATM-based PF withdrawals is set to be a landmark moment in India's financial and digital landscape. It will ensure greater financial flexibility and accessibility for millions of working professionals, reinforcing India's position as a leader in digital payments and e-governance.

With the June deadline approaching, employees can look forward to a faster, smoother, and more efficient way to access their hard-earned savings-one that truly brings retirement funds to their fingertips.

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