India's EPFO Pioneers Digital Transformation with UPI PF Withdrawals

The Employees' Provident Fund Organisation (EPFO) of India is set to revolutionize fund withdrawals with a new system using Unified Payments Interface (UPI) and ATMs. This development, approved by the Labour and Employment Ministry, promises enhanced financial flexibility and faster access to provident funds by May or June.

In a landmark development for India's workforce, the Employees' Provident Fund Organisation (EPFO) is poised to introduce a groundbreaking system for provident fund (PF) withdrawals via the Unified Payments Interface (UPI). This initiative has received the green light from the Labour and Employment Ministry.

According to Sumita Dawra, Secretary of the Ministry of Labour and Employment, PF members can expect a transformative experience by the end of May or June. The new system will allow users to view their account balances directly through UPI and withdraw up to Rs1 lakh instantly. They will also have the option to choose their preferred bank account for transactions, enhancing financial flexibility for various needs such as housing, education, and marriage.

The EPFO is making strides in digitalizing its processes, having integrated over 120 databases to expedite the withdrawal procedure. With claim processing dramatically reduced to three days and 95% of claims automated, recent reforms also benefit pensioners by removing geographical withdrawal limitations. Secretary Dawra emphasized alignment with Prime Minister Narendra Modi's vision of 'ease of living', aiming to simplify social security processes and modernize the IT infrastructure.

(With inputs from agencies.)