EPFO's UPI Integration: Revolutionizing Withdrawals

The Employees' Provident Fund Organisation (EPFO) is set to enable direct withdrawals into bank accounts through the UPI payment gateway by April. The forthcoming reform aims to simplify access, reduce the processing time for withdrawals, and align EPFO services with banking standards, benefiting around eight crore members.

The Employees' Provident Fund Organisation (EPFO) is undergoing a significant transformation, allowing subscribers to withdraw their provident fund directly to their bank accounts via the Unified Payment Interface (UPI) by April, according to insider sources.

The shift aims to simplify the access to funds and reduce the existing, time-consuming claims process. The labour ministry's project will enable EPFO members to see their eligible balances for transfer to their linked bank accounts, using their UPI PIN for secure transactions.

The initiative promises to benefit roughly eight crore members and ensure transactions are processed within three days. This change, part of an effort to align EPFO services with banking standards, also includes a streamlined rule for partial EPF withdrawals, merging 13 complex provisions into three categories: Essential Needs, Housing Needs, and Special Circumstances.