Retirement fund body Employees’ Provident Fund Organisation (EPFO) is set to introduce a new facility whereby subscribers will be allowed to withdraw part of their provident fund money in real time using the UPI method, recent reports have said.

According to the reports by PTI and CNBC TV18, EPFO subscribers will be able to withdraw their PF money through UPI, which will then directly be transferred to their bank accounts, making the process smooth and hassle-free and ending the decades-long way of waiting for your provident fund money to show up in your account.

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The labour ministry is working on a project under which a certain amount of PF money will be frozen, and members will be able to see a large chunk of their provident fund available for withdrawal through their bank using UPI, according to PTI citing a person familiar with the knowledge of the matter.

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As per the report by CNBC TV18, EPFO members can withdraw as much as 75% of their provident fund amount using the UPI method. The money will be directly transferred to their linked bank accounts, after which they will be able to withdraw cash.

According to existing PF rules, subscribers can withdraw 75% of the available balance immediately. The EPFO allows 100% withdrawal of funds only in cases where one has been unemployed for at least one year.

How to withdraw PF money using UPI?

The reports by PTI and CNBC TV18 stated that the EPFO will roll out a new mobile phone application through which the member would be able to withdraw their EPF money using UPI gateway.

The persons quoted by the news agency and media outlet explained that subscribers will be able to view the eligible PF balance available for transfer to their seeded bank accounts in the mobile application.

The subscribers will be required to select a valid reason to initiate a transaction for the withdrawal, for example illness, education, marriage, or housing.

They will be allowed to use their linked UPI PIN to complete the transaction, ensuring a secure transfer of funds to their bank accounts.

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The entire transfer will then be made through the UPI payment gateway, which will result in an instant settlement of funds.

The reports further mentioned that this app is likely to be launched in April, bringing good news to lakhs of EPF subscribers this year.

Currently EPFO members have to apply for withdrawal claims to access their EPF money, which is time-consuming. It typically takes at least three to four days for the money to get transferred.

New EPFO app

According to the reports, subscribers will be able to avail other services like passbook balance with the new EPFO app.

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.

The person cited by PTI said that 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 person further revealed that the EPFO is currently conducting trials using 100 dummy accounts to improve the efficacy of the service and remove any technical glitches that the service may have.

Key Takeaways

EPFO’s new app will allow real-time PF withdrawals via UPI, enhancing convenience for subscribers.Subscribers can withdraw up to 75% of their provident fund balance instantly.The app aims to streamline access to other EPFO services, improving overall user experience.