Subscribers of the Employees’ Provident Fund Organisation (EPFO) will soon be able to withdraw their provident fund money directly into their bank accounts through a UPI payment gateway, using a new mobile application scheduled for launch in April, a top source said.
According to the source, the labour ministry is working on a project under which a portion of the EPF corpus will be frozen, while a substantial amount will be made available for withdrawal into linked bank accounts via Unified Payment Interface (UPI).
The source told PTI that EPFO will introduce a dedicated mobile application enabling members to withdraw EPF funds through the UPI gateway, along with accessing services such as viewing their passbook balance.
At present, EPFO members access their accounts and services through the Universal Account Number (UAN) portal or the UMANG app. The source said these platforms will continue to function, while the new app will enhance accessibility and service delivery for subscribers.
He explained that the mobile application will allow members to see the eligible EPF balance available for transfer to their seeded bank accounts. Subscribers will be able to complete transactions using their linked UPI PIN, ensuring secure fund transfers.
The source stated that EPFO is currently conducting trials with 100 dummy accounts to improve service efficiency and eliminate any technical glitches. The labour ministry is expected to launch the new application with significant publicity in April.
Currently, EPFO members must file withdrawal claims to access their funds, a process that is often time-consuming. Under the auto-settlement mode, claims are processed electronically without manual intervention within three days of application.
The auto-settlement limit has already been increased to Rs 5 lakh from the earlier Rs 1 lakh, enabling a large number of members to access funds quickly for needs such as illness, education, marriage, and housing.
EPFO, which has around 8 crore members, introduced online auto-settlement of advance claims during the COVID-19 pandemic to provide rapid financial relief. However, members are still required to file claims to withdraw their own EPF money.
The new system aims to eliminate this lengthy process and reduce the workload on EPFO, which settles over 5 crore claims annually, most of them related to EPF withdrawals.
The source said that EPFO cannot permit direct withdrawals from EPF accounts as it does not hold a banking licence, but added that the government wants EPFO services to be brought on par with those offered by banks.
