In what is likely to be a revolutionary development for the workforce in India, the Provident Fund Organisation (EPFO) is set to introduce a system where Provident Fund (PF) withdrawals can happen through Unified Payments Interface (UPI).
According to media reports, by the end of May or June, members will be able to view their PF account balance directly on UPI
In what is likely to be a revolutionary development for the workforce in India, the Provident Fund Organisation (EPFO) is set to introduce a system where Provident Fund (PF) withdrawals can happen through Unified Payments Interface (UPI).
This is to happen because the Employment Ministry has approved the recommendation put forth by the National Payments Corporation of India (NPCI), the body that operates retail payments and settlements in India.
According to media reports, by the end of May or June, members will be able to view their PF account balance directly on UPI. They will also be able to instantly withdraw Rs one lakh automatically and choose their preferred bank account for the same.
The withdrawal options have been increased to provide more financial flexibility to the members. Members can now withdraw funds for various purposes like housing, education, marriage or for medical reasons.
According to media reports, the digitization process has been made better and now it integrates over 120 databases to streamline the withdrawal process. The time for claim processing has been reduced to just three days. 95 per cent of claims are now automated. There are also plans to further simplify the claims process.
Pensioners have also benefited from the reforms. Since December, they have been able to withdraw funds from any bank branch. Thus, there are no geographical limitations for withdrawing funds, which was earlier limited to a few brands.
The process has not been easy because of sheer numbers. The EPFO has over 7.5 crore active members and is growing constantly by adding 10-12 lakh members every month across its 147 regional offices spread across the entire nation.
These reforms are keeping in line with Prime Minister Narendra Modi's vision of "ease of living" for both employees and employers.
The launch of UPI and ATM based PF withdrawal will mark the next step in making PF withdrawals easy and will make the lives of millions of working professionals easier.
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