Summary of this article
EPFO to launch a new app enabling UPI-based EPF withdrawals.
Subscribers can transfer eligible EPF funds using UPI PIN.
Pilot underway; full app launch is expected in April this year.
If you are an Employee Provident Fund (EPF) subscriber, you will be able to withdraw funds from the EPF soon from your bank account using the Unified Payment Interface (UPI) gateway. The Labour Ministry is working on a project where a certain amount of EPF will be frozen, and out of it, a proportion will be allowed for withdrawal.
The Employees’ Provident Fund Organisation (EPFO) will roll out a new mobile phone application for it through which UPI-based EPF withdrawals will be permitted from an EPF account, citing a source, reported PTI. The app will also show the passbook balance, among offering other EPF-related services. The app is expected to be launched in April this year.
At present, the EPF subscribers can check their EPF passbook or account balance, and avail of other services through the EPFO website using Universal Account Number (UAN) or through the UMANG app. Per the PTI report, there will be no change in these offerings; the services on these platforms will remain the same, but the new app will improve the delivery of services for the subscribers.
They would be able to view the EPF balance that can be transferred to their bank account in the new app, and they can execute the transfer transaction using their UPI PIN. So, this will make withdrawal easier for subscriber by simply transferring the eligible withdrawable amount to their bank account and then withdrawing the funds from their bank account.
At present, EPF subscribers face several technical and operational issues in fund withdrawal, which this new app aims to address. Under the auto-settlement mode, the claims for partial withdrawal are settled electronically without manual approval or officers’ intervention. The funds are transferred typically within three days of filing the application form.
The EPFO has raised the auto-settlement claim limit from Rs 1 lakh to Rs 5 lakh, making it convenient for subscribers to withdraw the necessary amount for certain purposes, such as education, marriage, illness, and housing needs.
The auto-settlement has made EPF withdrawals much easier. Besides, the recent changes in the operational rules, such as the removal of mandatory document submission, etc. Reportedly, EPFO settles approximately 5 crore claims every year. Earlier, the manual approval, rejection, and clarification used to be time-consuming, giving rise to grievances. The auto-settlement addressed this and made the settlement process streamlined and faster for subscribers.
Per the report, the EPFO is conducting a pilot with 100 dummy accounts to understand the technical glitches and other issues that may arise in the withdrawal process.
