The Employee Provident Fund (EPF) subscribers will soon be able to withdraw funds via the Unified Payments Interface (UPI). The process of EPF withdrawals is often daunting for some individuals due to claim rejections. However, the Employees’ Provident Fund Organisation (EPFO) is now working to ease the process of claim settlement by introducing the option of fund withdrawal via UPI, a popular digital payment and transaction facility.
According to a report by the Financial Express, EPFO’s executive committee of the Central Board of Trustees (CBT) has given its approval to the plan of integrating itself with UPI, which would enable the smooth processing of claims by EPF subscribers.
The report states that the committee was briefed about the framework in its meeting held earlier this week. Discussions were held on the framework of this facility, detailing how subscribers will withdraw their PF claims via the UPI across various platforms. CBT is likely to give its final approval on this framework soon.
When Can You Avail of This Facility?
The option of withdrawal of claims through UPI is expected to be functional by late April or early May, the report notes. “The National Payment Corporation of India (NPCI) is examining the technical aspects, but is ready to execute the plan,” an official told FE.
The subscribers will be able to access their claim amount through a digital wallet once their EPF account is linked to the UPI.
EPFO Working On Big Reforms
Recently, EPFO has been working on a significant overhaul of its system, particularly related to IT and user-friendly interface. It is developing a ‘centralised database’ to initiate a centralised payment system under the EPFO, which will keep records of a subscriber in one place, even if they shift locations. This facility is expected to be operational by the end of March.
This database will be instrumental in setting up the facility for the withdrawal of claims via UPI.
Since the beginning of this year, EPFO has rolled out many reforms and new guidelines that are aimed at making the EPF transfer (and withdrawal) process easier for employees and pensioners.
The retirement fund body, so far, has processed the highest-ever claims for over 50 million subscribers in the financial year (FY) 2025. It has disbursed over Rs 2.05 lakh crore in comparison to a settlement of 44.5 million claims amounting to Rs 1.82 lakh crore in FY24.
