India's Financial Revolution: EPFO Unveils UPI-Based PF Withdrawals

The Employees' Provident Fund Organisation (EPFO) is set to launch a groundbreaking system allowing Provident Fund (PF) withdrawals via Unified Payments Interface (UPI) and ATMs. Approved by the Labour Ministry, this initiative promises enhanced financial flexibility and ease for millions of Indian workers by May or June.

The Employees' Provident Fund Organisation (EPFO) is poised to launch a revolutionary system enabling Provident Fund (PF) withdrawals through the Unified Payments Interface (UPI) by mid-year. This major move, approved by the Ministry of Labour and Employment, marks a significant leap towards digital financial transformation in India.

According to Ministry Secretary Sumita Dawra, EPFO members will soon experience a seamless process to access their funds, allowing instant withdrawals of up to Rs1 lakh using UPI and ATMs. The initiative aims to enhance financial flexibility, offering options for housing, education, and marriages, alongside existing provisions.

EPFO has been digitalizing its processes exponentially, integrating over 120 databases to streamline withdrawal procedures and reduce claim-processing time to three days, with a 95% automation rate. Recent reforms have also expanded pension withdrawal options, removing geographical limitations for 78 lakh pensioners since December.

The organisation, which has over 7.5 crore active members and continues to grow, aligns these reforms with Prime Minister Narendra Modi's vision of 'ease of living'. By modernizing infrastructure, EPFO aims to simplify social security processes and increase convenience for the Indian workforce.

The introduction of UPI and ATM-based PF withdrawals is expected to significantly enhance the speed and ease of transaction for employees across the country, emphasizing India's stride towards a digital financial future.

(With inputs from agencies.)