PF Withdrawals Go Digital: UPI & ATM Access from June | Read Details

New Delhi: In a groundbreaking move aimed at enhancing financial accessibility, the Employees' Provident Fund Organisation (EPFO) is set to introduce Unified Payments Interface (UPI) and ATM-based withdrawals for Provident Fund (PF) members. The initiative, backed by the Labour and Employment Ministry, is expected to roll out by the end of May or June this year.

Seamless Withdrawals with UPI & ATMs

Speaking exclusively with news agency ANI, Sumita Dawra, Secretary of the Ministry of Labour and Employment, confirmed that members will soon be able to withdraw funds through UPI and ATMs. This initiative follows the approval of the National Payments Corporation of India (NPCI), which operates India's retail payments and settlement systems.

Under this new system, PF members will be able to check their account balance directly on UPI and instantly withdraw up to Rs 1 lakh through an automated system. Moreover, members will have the flexibility to choose their preferred bank account for fund transfers, making the withdrawal process more convenient than ever before.

More Flexibility in Withdrawals

Apart from the ease of access, EPFO has also expanded its withdrawal options. Members can now withdraw funds for housing, education, and marriage, in addition to the existing provisions for medical emergencies. These changes aim to provide employees with greater financial flexibility to meet their immediate needs.

Faster & Digitized Claims Processing

The EPFO has undergone extensive digital transformation, integrating over 120 databases to streamline the claims process. As a result, the claim processing time has been dramatically reduced to just three days, with 95% of claims now automated. The organization continues to enhance its IT infrastructure to ensure faster and more efficient financial transactions.

Pensioner-Friendly Reforms

EPFO’s digital push has also brought relief to pensioners. Since December 2023, 78 lakh pensioners have benefited from reforms allowing them to withdraw funds from any bank branch, eliminating previous geographical restrictions.

A Step Towards ‘Ease of Living’

The scale of EPFO’s operations is massive, with over 7.5 crore active members and 10-12 lakh new members joining every month. With 147 regional offices covering the entire country, the organization has been consistently working on modernizing social security processes.

Secretary Dawra asserted that these reforms align with Prime Minister Narendra Modi’s vision of “ease of living”, ensuring simplified procedures for both employees and employers.

The introduction of UPI and ATM-based withdrawals is set to be a game-changer, providing millions of working professionals with unprecedented speed and convenience in accessing their provident funds.