EPFO could enable EPF withdrawal by UPI utilizing new app from April – Market Evaluation & Information

If in case you have an Staff’ Provident Fund (EPF) account, withdrawing cash may quickly develop into a lot sooner and easier — probably as straightforward as making a UPI cost.

The Staff’ Provident Fund Organisation (EPFO) is getting ready to launch a brand new cell utility in April that may enable subscribers to withdraw eligible EPF funds immediately into their financial institution accounts utilizing the UPI cost gateway, authorities sources instructed PTI.

The transfer is aimed toward making EPF entry extra handy for the organisation’s almost 8 crore members, lots of whom at present face a multi-step declare course of to withdraw their very own financial savings.

“The labour ministry is engaged on a challenge the place a sure proportion of the EPF might be frozen, and a big chunk might be accessible for withdrawal by their checking account utilizing Unified Fee Interface (UPI),” the supply instructed PTI.

The supply additional mentioned that the Staff’ Provident Fund Organisation will roll out a brand new cell phone utility by which the member would have the ability to withdraw their EPF cash utilizing UPI gateway in addition to avail different providers like passbook steadiness.

What may change for EPF subscribers

As we speak, EPF withdrawals require members to:

• 
  file a declare on-line by the UAN portal or UMANG app
• 
  look forward to processing and approval
• 
  obtain funds of their checking account after settlement

With the proposed system, subscribers could possibly:

• 
  view their withdrawable EPF steadiness within the new cell app
• 
  switch eligible funds on to their linked checking account
• 
  authenticate the transaction utilizing a UPI PIN
• 
  This might considerably cut back the effort and time required to entry EPF financial savings.

Trials already underway

The EPFO is at present testing the system utilizing dummy accounts to establish and repair technical points earlier than the official rollout. The brand new app is predicted to enhance — not exchange — current platforms just like the UAN portal and UMANG app.

Members will nonetheless have the ability to test their EPF passbook steadiness and entry different providers by the brand new utility.

Quicker entry to emergency funds

In recent times, EPFO has already been working to hurry up withdrawals. In the course of the pandemic, it launched auto-settlement of advance claims, which permits eligible withdrawals to be processed electronically inside three days with out handbook intervention.

The restrict for auto-settlement has since been elevated to ₹5 lakh, enabling faster entry to funds for:

• 
  medical emergencies
• 
  training
• 
  marriage bills
• 
  housing wants

Nonetheless, members nonetheless must submit withdrawal claims — a course of the brand new system goals to simplify additional.

Why EPFO is making this variation

Every year, EPFO processes over 5 crore claims, most of them associated to withdrawals. Simplifying the method may cut back administrative workload whereas bettering the expertise for subscribers.

Officers instructed PTI the organisation can not enable direct withdrawals from EPF accounts like a financial institution as a result of it doesn’t maintain a banking licence. As an alternative, the brand new system will switch funds securely to members’ financial institution accounts by UPI.

The broader purpose is to make EPF providers as accessible and environment friendly as trendy banking platforms, whereas sustaining safety and compliance safeguards. 
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