- By Aditya Pratap Singh
- Fri, 21 Feb 2025 05:35 PM (IST)
- Source:JND
PF Withdrawals Via UPI: Good news for Members of the Employees' Provident Fund Organisation (EPFO) as they will soon be using the Unified Payment Interface (UPI) apps to withdraw their provident fund (PF) claims in a faster and more seamless manner.
According to a report in Financial Express, the EPFO has drawn up a plan and is in talks with NPCI to launch this facility within the next two to three months. As per the report, a blueprint for the same is already in place for its implementation. Once the facility becomes operational, users can withdraw their funds from EPF accounts via Gpay, PhonePe, Paytm and other UPI apps.
Instant Fund Withdrawals through UPI
Currently, EPFO members are settling their claims through bank transfers, which can take a few days to complete. Now with the UPI mode of operation, the funds will be credited directly to the member's linked UPI ID instantly, providing instant access, especially during a financial emergency.
Improving Efficiency And Transparency
The initiative is part of a larger digital upgrade programme led by the labour ministry in collaboration with the Reserve Bank of India (RBI) and commercial banks. It aims to facilitate the withdrawal process, reduce the time taken, reduce paperwork and increase transparency.
EPFO settles over 50 million claims in current FY
In the current financial year (FY25), the EPFO has so far settled over 50 million claims, paying out Rs 2.05 lakh crore to its 74 million subscribers. This is a significant jump from FY24, in which 44.5 million claims amounting to Rs 1.82 lakh crore were settled.
Meanwhile, the number of auto claim settlements within three days has increased from 8.95 million a year ago to 18.7 million in FY25.
To Simplify Settlement
When implemented, it will allow instant access to claim amounts through UPI-linked digital wallets for the claimant and greatly reduce glitches in user experience. This is part of EPFO's continuous improvements on IT system upgradation and service improvement for smooth claim settlement.
This move is in line with India's effort to move towards a more digital and efficient financial ecosystem, which will ensure that EPFO subscribers can access their hard-earned savings in a quick and hassle-free manner.