EPFO withdrawal through ATMs, integration with UPI for payment up to Rs 1 lakh soon

The Employees’ Provident Fund Organisation or EPFO aims to streamline further its claim settlement procedures and plans to incorporate UPI payments for amounts up to Rs 1 lakh. In a conversation with TOI, Labour Secretary Sumita Dawra confirmed that NPCI has provided the UPI framework, with EPFO expected to implement it within the coming months to facilitate easier access to funds for subscribers.
"This will benefit all members, as they will be able to view their EPFO accounts directly in the UPI interface and make auto-claims. If the subscriber is eligible, the approval process will be instant, ensuring quick credit to their accounts," she said.
The auto settlement feature, capped at Rs 1 lakh, enables subscribers to access funds for various purposes including medical expenses, housing advances, education and marriage.
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EPFO has streamlined its validation process, reducing checks from 27 to 18, with recommendations to further decrease them to six. According to Dawra, auto settlements are now completed in three days, compared to several weeks previously, with the number of settlements increasing from approximately 90 lakh last year to nearly 1.9 crore in the current fiscal year.
Sumita Dawra, whilst speaking to ANI, revealed that by the end of May or June this year, EPFO subscribers will gain the capability to access their provident fund using UPI and ATM facilities.
At present, EPFO participants do not have the option to withdraw PF via UPI. The implementation of this new system is anticipated to drastically reduce the processing time from the current 2-3 days to mere minutes or hours.
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This enhancement in PF withdrawal functionality aims to provide EPFO members with a streamlined experience, similar to how UPI has transformed digital payment methods.
Dawra emphasised that EPFO has now created a centralised database, marking a significant first. "Our next step is to incorporate UPI into the system. We have received suggestions from the National Payments Corporation of India regarding this integration and have submitted a proposal to EPFO for consideration. After conducting the necessary testing, we expect to roll out the UPI frontend for EPFO claims by the end of May. This will benefit all members, as they will be able to view their EPFO accounts directly in the UPI interface and make auto-claims. The approval process will be instant If the consumer is eligible, ensuring quick credit to their accounts," she told ANI.