In an aim to improve efficiency and reduce transaction time,, the Employees’ Provident Fund Organisation (EPFO) is set to introduce UPI for processing claims, said labour and employment secretary Sumita Dawra on Tuesday.
Enabling PF Withdrawal Via UPI
Soon, the pensioners and members of the Employees’ Provident Fund Organisation (EPFO) may be able to access their funds through the Unified Payments Interface (UPI).
The Labour and Employment ministry appears to have approved the recommendation of the National Payments Corporation of India (NPCI).
It appears that the retirement fund body is planning to roll out this feature by the end of May.
When it comes to NPCI, it operates retail payments and settlement systems in India.
The EPFO members will soon be able to withdraw their provident fund through UPI and ATMs by the end of May or June this year Sumita Dawra informed during a media interaction.
Adding, “By May-end or June, members will experience a transformative change in accessing their provident funds. They will be able to view their PF account balance directly on UPI, instantly withdraw up to Rs 1 lakh through an automated system, and choose their preferred bank account for transfers.”
Moving ahead, the withdrawal options have been expanded to include funds for housing, education, and marriage, along with existing provisions for sickness, Dawra said.
Expected Huge Improvement In Processing Time
According to the labour and employment secretary, “The EPFO has made significant strides in digitalizing its processes, integrating over 120 databases to streamline the withdrawal process. Claim processing time has been dramatically reduced to just 3 days, with 95% of claims now automated and plans to further simplify the process underway.”
If we consider the present process, EPFO members cannot withdraw PF through UPI.
After introduction of UPI, the claim process is expected to be completed within hours or even minutes which is much better compared to the current 2–3 days.
As we have already witnessed that UPI has simplified digital payments.
So, this feature is most likely expected to make PF withdrawals easier for the individual.
