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A top government official said that members of the Provident Fund will be able to immediately withdraw up to Rs 1 lakh and choose their favorite bank account for transfer, once the new system comes in place
Members of the Provident Fund will soon be able to withdraw money through UPI and ATMs. (Image: News18/File)
In an important development, members of the Provident Fund will soon be able to withdraw money through UPI and ATM. A top government official said that the provident fund organization of employees is ready to introduce this revolutionary withdrawal system by the end of May or June, which gives financial flexibility to crores of people.
Employees Provident Fund Organization (EPFO) will enable withdrawal through Unified Payments Interface (UPI). The step has come after its retrenchment for the recommendation of the National Payment Corporation of India (NPCI) by the Ministry of Labor and Employment, which is a umbrella organization operating retail payment and disposal system in India.
Sumita Davra, secretary of the Ministry of Labor and Employment, told the news agency especially the news agency ANI That Provident Fund (PF) members will soon be able to withdraw money through UPI and ATMs by the end of May or June. He said that he would be able to withdraw up to Rs 1 lakh immediately and after coming to the new system, he can choose his favorite bank account for transfer.
Davra said that there will be a transformational change in PF accessibility, while members will also be able to check the balance of their PF account on UPI. He said that the expansion of withdrawal options would not only provide financial facilities, but will also help the members in addition to the existing disease provisions, to withdraw money quickly for housing, education and marriage.
He said, “EPFO has made significant progress in digitizing its processes, integrating more than 120 databases to streamlinom the return process. Claim processing time has been dramatically reduced by only 3 days, has now been automated with 95% claims and plans to make the process more simplified,” he said. ANI,
He further said that recent reforms have also benefited pensioners. Since December 2024, 78 lakh pensioners have enjoyed an increase in flexibility with the ability to withdraw funds from any bank branch. The geographical boundaries for pension withdrawal, which were only for selected bank branches, are no longer present.
The EPFO faced a difficult task in presenting these reforms, Davara said. He said that there are more than 7.5 crore active members in the organization and add 10 to 12 lakh new members every month to 147 regional offices across the country.
He also said that EPFO reforms are aligned with Prime Minister Narendra Modi’s approach to ‘ease of living’ for employees and employers.
